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[G.R. No. 132753.

February 15, 1999]


MARIO SIASOCO, ANGELITA E. SIASOCO, MA. ELLA SIASOCO, ESTER
SIASOCO!LAM"G, MA. LO"R#ES SIASOCO LAM"G!ARRIOS, MA. RAMONA
SIASOCO LAM"G, MA. $ICTORIA SIASOCO LAM"G!#OMING"E%, ELEN
SIASOCO!&OSE, RAFAEL SIASOCO &OSE, C'NT(IA SIASOCO &OSE, CRISTINA
SIASOCO &OSE, ROERTO SIASOCO &OSE, CARI#A# SIASOCO &OSE, RAMON
SIASOCO &OSE, OSCAR SIASOCO, R"EN SIASOCO, SALOME SIASOCO!)A%,
ME#AR#O )A% SIASOCO, ROLAN#O )A% SIASOCO, &ES"S )A% SIASOCO,
NELL' STO. #OMINGO NARIO, MAR' GRACE, STO. #OMINGO NARIO a*+
MAR' ANNE STO. #OMINGO NARIO, petitioners, vs. CO"RT OF A))EALS, (ON.
MARCELINO F. A"TISTA, &R., )re-.+.*/ &u+/e, ra*01 215, Re/.o*a2 Tr.a2 Cour3,
4ue5o* C.3y, a*+ 31e IGLESIA NI CRISTO, respondents.
# E C I S I O N
)ANGANIAN, J.6
No37.31-3a*+.*/ 31e 8.2.*/ o8 a re-9o*-.:e 92ea+.*/ by o*e +e8e*+a*3, 31e 0o;92a.*3 ;ay
-3.22 be a;e*+e+ o*0e, a- a ;a33er o8 r./13, by 31e 92a.*3.88 .* re-9e03 3o 02a.;- a/a.*-3 31e
*o*!a*-7er.*/ +e8e*+a*3<-=. T1e Cour3 a2-o re.3era3e- 31a3 certiorari .- *o3 31e 9ro9er
re;e+y 3o 0o*3e-3 a 2o7er 0our3>- 8.*a2 a+?u+.0a3.o*, -.*0e a99ea2 .- a:a.2ab2e a- a
re0our-e.
S3a3e;e*3 o8 31e Ca-e
)e3.3.o*er- a--a.2 31e February 25, 199@ #e0.-.o*
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[1] o8 31e Cour3 o8 A99ea2-
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[2] .* CA!
GR S) No. A5A51, 31e +.-9o-.3.:e 9or3.o* o8 71.01 rea+-6
BC(EREFORE, [31e] 8ore/o.*/ 0o*-.+ere+, 31e 9re-e*3 9e3.3.o* 8or 0er3.orar. .- 1ereby
#ENIE# 8or 2a0D o8 ;er.3. T1e Te;9orary Re-3ra.*.*/ Or+er .--ue+ by 31.- Cour3 o*
#e0e;ber 17, 1997 .- 1ereby 2.83e+. )e3.3.o*er- are /.:e* -.E <F= +ay- 8ro; re0e.93 o8 31.-
+e0.-.o* 7.31.* 71.01 3o 8.2e 31e.r a*-7er. T1e ;o3.o* 8or ora2 ar/u;e*3 8.2e+ by
re-9o*+e*3 .- re*+ere+ ;oo3. Re-9o*+e*3 0our3 .- or+ere+ 3o 9ro0ee+ a*+ re-o2:e 31e
0a-e 7.31 +e2.bera3e -9ee+.G
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4ue5o* C.3y, ra*01 215, +a3e+ Au/u-3 11, 1997 a*+ Se93e;ber 11, 1997 .* C.:.2 Ca-e
No. 4!97!299FH.
.:
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BCar.--aG= 8ro; 31e Co;92a.*3, a*+ <3= +e*.e+ 31e Mo3.o* 3o #e02are #e8e*+a*3- S.a-o0o
et al. <1ere.* 9e3.3.o*er-= .* #e8au23. T1e -e0o*+ Or+er +e*.e+ 31e Mo3.o* 8or Su-9e*-.o*
8.2e+ by +e8e*+a*3- a*+ +.re03e+ 31e; 3o 8.2e 31e.r a*-7er 3o 92a.*3.88>- A;e*+e+
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R.5a2. I* #e0e;ber 199A, 31ey be/a* 3o o88er 31e -ub?e03 9ro9er3.e- 8or -a2e.
Sub-eIue*32y, I/2e-.a *. Cr.-3o <INC= *e/o3.a3e+ 7.31 31e 9e3.3.o*er-, bu3 31e 9ar3.e- 8a.2e+
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+.-0u--.o*-. I* a 2e33er +a3e+ #e0e;ber 1F, 199F, 9e3.3.o*er- ;a+e a 8.*a2 o88er 3o 31e
INC. T1e 2a33er>- 0ou*-e2 -e*3 a re92y re0e.:e+ by )e3.3.o*er Mar.o S.a-o0o o* #e0e;ber
2A, 199F, -3a3.*/ 31a3 31e o88er 7a- a00e93e+, bu3 31a3 31e INC 7a- B*o3 a;e*ab2e 3o your
9ro9o-a2 3o a* u*+er:a2ua3.o* o8 31e 3o3a2 0o*-.+era3.o*.G I* 31e.r 2e33er +a3e+ &a*uary @,
1997, 9e3.3.o*er- 02a.;e+ 31a3 31e INC 1a+ *o3 rea22y a00e93e+ 31e o88er, a++.*/ 31a3, 9r.or
3o 31e.r re0e.93 o8 31e a8ore;e*3.o*e+ re92y o* #e0e;ber 2A, 199F, 31ey 1a+ a2rea+y
B0o*3ra03e+G 7.31 Car.--a 8or 31e -a2e o8 31e -a.+ 9ro9er3.e- B+ue 3o 31e ab-e*0e o8 a*y
re-9o*-e 3o 31e.r o88er 8ro; INC.G
Ma.*3a.*.*/ 31a3 a -a2e 1a+ bee* 0o*-u;;a3e+, INC +e;a*+e+ 31a3 31e 0orre-9o*+.*/
+ee+ be eEe0u3e+ .* .3- 8a:or. )e3.3.o*er- re8u-e+. T1e e*-u.*/ e:e*3- 7ere *arra3e+ by
31e Cour3 o8 A99ea2-, a- 8o22o7-6
BO* &a*uary 1A, 1997, 9r.:a3e re-9o*+e*3 8.2e+ a 0.:.2 -u.3 8or [-]9e0.8.0 [9]er8or;a*0e
a*+ [+]a;a/e- a/a.*-3 9e3.3.o*er- a*+ Car.--a (o;e- a*+ #e:e2o9;e*3 J )ro9er3.e-,
I*0. +o0De3e+ a- C.:.2 Ca-e No. 4!97!299FH.
B)e3.3.o*er- 8.2e+ 31ere.* a Mo3.o* 3o #.-;.-- o* 31e /rou*+ o8 .;9ro9er :e*ue a*+ 2a0D
o8 0a9a0.3y 3o -ue.
BCar.--a (o;e- 8.2e+ .3- a*-7er 3o 31e 0o;92a.*3 o* February 2A, 1997.
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Car.--a (o;e- 71.01 0u2;.*a3e+ .* 31e 9ur01a-e o8 31e -ub?e03 9ro9er3.e- o8 Car.--a
(o;e- by 9r.:a3e re-9o*+e*3.
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Car.--a (o;e- a- o*e o8 31e +e8e*+a*3- a*+ 01a*/.*/ 31e *a3ure o8 31e 0a-e 3o a ;ere
0a-e 8or +a;a/e-.
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0o;92a.*3 0a**o3 be a;e*+e+ 7.31ou3 2ea:e o8 0our3, -.*0e a re-9o*-.:e 92ea+.*/ 1a-
bee* 8.2e+.
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A;e*+e+ Co;92a.*3 7a- re*+ere+.
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31e re-o2u3.o* [by] 31e re-9o*+e*3 0our3 o8 31e Mo3.o* 3o #.-;.-- ear2.er 8.2e+.
BO* Se93e;ber 11, 1997, 31e -e0o*+ a--a.2e+ or+er +e*y.*/ 9e3.3.o*er-> Mo3.o* 3o
Su-9e*+ )ro0ee+.*/ 7a- re*+ere+[,] 31e Or+er rea+-6
KF.2e+ a2-o 2a-3 Se93e;ber 1, 1997 [7a-] a Mo3.o* 8or Su-9e*-.o* by 31e +e8e*+a*3
S.a-o0o 31ru 31e.r 0ou*-e2 A33y. C2ara #u;a*+a*/!S.*/1. A231ou/1 31e 0our3 0ou2+ *o3
0o*-.+er 31e ;o3.o* 8.2e+ be0au-e .3 :.o2a3e- 31e *e7 ru2e- o* 9er-o*a2 -er:.0e, .* 31e
.*3ere-3 o8 ?u-3.0e, 31e 0our3 7.22 re-o2:e 31e ;o3.o*. I* 31e re-o2u3.o* o8 31.- 0our3 +a3e+
Au/u-3 11, 1997, .3 -3a3e[+] 31a3 +e8e*+a*3- [7ere be.*/] /.:e* a 9er.o+ o8 8.:e <5= +ay-
7.31.* 71.01 3o 8.2e [a*] a*-7er 3o 31e A;e*+e+ Co;92a.*3. T1e +e8e*+a*3- 1ere
ob:.ou-2y re8er 3o 31e +e8e*+a*3- Mar.o S.a-o0o, e3. a2. I* 31e Mo3.o* 8or Su-9e*-.o* 8.2e+
by 31e +e8e*+a*3- S.a-o0o, e3 a2., 31e 2a33er .*-.-3 o* 31e 0our3 re-o2:.*/ 31e ;o3.o* 3o
+.-;.--. A- -3a3e+ .* 31e re-o2u3.o*, 31e ;o3.o* 3o +.-;.-- .- *o7 ;oo3 a*+ a0a+e;.0
be0au-e o8 31e A;e*+e+ Co;92a.*3 8ro; S9e0.8.0 )er8or;a*0e 7.31 #a;a/e- 3o ?u-3
#a;a/e-. For 31.- 0our3 3o re-o2:e 31e Mo3.o* 3o #.-;.-- EEE 31e 8.r-3 0o;92a.*3, 7ou2+
be a* eEer0.-e .* 8u3.2.3y. T1e ;a.* 0o;92a.*3 *o7 .- +a;a/e- a*+ *o 2o*/er S9e0.8.0
)er8or;a*0e 7.31 +a;a/e- 71.01 [7a-] a03ua22y 71a3 31e Re-o2u3.o* +a3e+ Au/u-3 11,
1997 [7a-] a22 abou3. e 31a3 a- .3 ;ay, 31e 0our3 /.:e- +e8e*+a*3- S.a-o0o, e3 a2. 8.83ee*
<15= +ay- 8ro; re0e.93 o8 31.- Or+er 3o 8.2e 31e.r re-9e03.:e A*-7er- 3o 31e A;e*+e+
Co;92a.*3, *o3 8ro; 31e re0e.93 o8 31e re-o2u3.o* o8 31e Mo3.o* 3o #.-;.-- 71.01 7.22 *o3
be 8or310o;.*/.>G
Ru2.*/ o8 31e Cour3 o8 A99ea2-
T1e Cour3 o8 A99ea2- <CA= ru2e+ 31a3 a231ou/1 9r.:a3e re-9o*+e*3 0ou2+ *o 2o*/er a;e*+
.3- or./.*a2 Co;92a.*3 a- a ;a33er o8 r./13, .3 7a- *o3 9re02u+e+ 8ro; +o.*/ -o 7.31 2ea:e
o8 0our3. T1u-, 31e CA 0o*02u+e+ 31a3 31e RTC 1a+ *o3 a03e+ 7.31 /ra:e abu-e o8
+.-0re3.o* .* a+;.33.*/ 9r.:a3e re-9o*+e*3>- A;e*+e+ Co;92a.*3.
)e3.3.o*er- ar/ue+ 31a3 31e 3r.a2 0our3 71ere 31e or./.*a2 Co;92a.*3 8or -9e0.8.0
9er8or;a*0e 1a+ bee* 8.2e+ 7a- *o3 31e 9ro9er :e*ue. #ebu*D.*/ 9e3.3.o*er-> ar/u;e*3,
31e CA eE92a.*e+ 31a3 31e RTC *e:er31e2e-- 1a+ ?ur.-+.03.o* o:er 31e -a.+ Co;92a.*3.
T1e CA a2-o 1e2+ 31a3 31e A;e*+e+ Co;92a.*3 +.+ *o3 -ub-3a*3.a22y a23er 9r.:a3e
re-9o*+e*3>- 0au-e o8 a03.o*, -.*0e 9e3.3.o*er- 7ere *o3 be.*/ a-De+ 3o a*-7er a 2e/a2
ob2./a3.o* +.88ere*3 8ro; 31a3 -3a3e+ .* 31e or./.*a2 Co;92a.*3.
A--./*;e*3 o8 Error-
I* 31e.r Me;ora*+u;, 9e3.3.o*er- -ub;.3, 8or 31e 0o*-.+era3.o* o8 31.- Cour3, 31e
8o22o7.*/ .--ue-6
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BA.
C1e31er or *o3 31e re-9o*+e*3 Cour3 o8 A99ea2- /ra:e2y erre+ .* 1o2+.*/ 31a3 31e
re-9o*+e*3 &u+/e>- a+;.--.o* o8 INC>- A;e*+e+ Co;92a.*3 7a- 9ro9er.
B.
C1e31er or *o3 31e re-9o*+e*3 Cour3 o8 A99ea2- /ra:e2y erre+ .* a88.r;.*/
re-9o*+e*3 &u+/e>- +e*.a2 o8 9e3.3.o*er-> KMo3.o* 8or Su-9e*-.o*.>
BC.
C1e31er or *o3 31e re-9o*+e*3 Cour3 o8 A99ea2- /ra:e2y erre+ .* re8u-.*/ 3o 1ear
9e3.3.o*er-> a992.0a3.o* 8or a 3e;9orary re-3ra.*.*/ or+er a*+ 7r.3 o8 9re2.;.*ary
.*?u*03.o*.G
S.;92y -3a3e+, 31e Iue-3.o* .-6 +.+ 31e CA err .* a88.r;.*/ 31e 37o Or+er- o8 31e RTC
71.01 1a+ a22o7e+ 31e A;e*+e+ Co;92a.*3L
T1e Cour3>- Ru2.*/
T1e 9e3.3.o* .- +e:o.+ o8 ;er.3. Ce -u-3a.* 31e Cour3 o8 A99ea2-, bu3 8or rea-o*- +.88ere*3
8ro; 31o-e /.:e* .* 31e a--a.2e+ #e0.-.o*.
)re2.;.*ary I--ue6 Propriety of Certiorari
I* 31e.r )e3.3.o* a*+ Me;ora*+u;, Mar.o S.a-o0o et al. e;91a-.5e 31a3 B31e .*-3a*3 -u.3
7a- 0o;;e*0e+ 9ur-ua*3 3o Ru2e F5 o8 31e 1997 Ru2e- o8 )ro0e+ureG a*+ a22e/e B31a3
Re-9o*+e*3 Cour3 o8 A99ea2- 0o;;.33e+ /ra:e abu-e o8 +.-0re3.o* .* .--u.*/ 31e
01a22e*/e+ #e0.-.o* +a3e+ February 25, 199@ EEE.G T1.- .- a 9ro0e+ura2 error. For 31e
7r.3 o8 certiorari u*+er Ru2e F5 3o .--ue, 31e 9e3.3.o*er ;u-3 -1o7 *o3 o*2y 31a3 31e 2o7er
0our3 a03e+ 7.31 /ra:e abu-e o8 +.-0re3.o*, bu3 a2-o 31a3 B31ere .- *o a99ea2, or a*y o31er
92a.*, -9ee+y, a*+ a+eIua3e re;e+y .* 31e or+.*ary 0our-e o8 2a7.G
:..
[7] S.*0e 31e
Iue-3.o*e+ CA #e0.-.o* 7a- a +.-9o-.3.o* o* 31e ;er.3-, a*+ -.*0e -a.+ Cour3 1a- *o
re;a.*.*/ .--ue 3o re-o2:e, 31e 9ro9er re;e+y a:a.2ab2e 3o 9e3.3.o*er- 7a- a 9e3.3.o* 8or
re:.e7 u*+er Ru2e A5, *o3 Ru2e F5. Fur31er;ore, a- a /e*era2 ru2e, certiorari u*+er Ru2e
F5 0a**o3 .--ue u*2e-- 31e 2o7er 0our3, 31rou/1 a ;o3.o* 8or re0o*-.+era3.o*, 1a- bee*
/.:e* a* o99or3u*.3y 3o 0orre03 31e .;9u3e+ error.
:...
[@] A231ou/1 31ere are re0o/*.5e+
eE0e93.o*- 3o 31.- ru2e, 9e3.3.o*er- +o *o3 02a.; 31a3 31.- 0a-e .- o*e o8 31e;. For 31.-
9ro0e+ura2 2a9-e, 31e .*-3a*3 9e3.3.o* -1ou2+ be +.-;.--e+ ou3r./13.
No*e31e2e--, .*a-;u01 a- 31e )e3.3.o* 7a- 8.2e+ 7.31.* 31e 15!+ay 9er.o+ 9ro:.+e+ u*+er
Ru2e A5, a*+ 0o*-.+er.*/ 31e .;9or3a*0e o8 31e .--ue ra.-e+ a*+ 31e 8a03 31a3 9r.:a3e
re-9o*+e*3 +.+ *o3 Iue-3.o* 31e 9ro9r.e3y o8 31e .*-3a*3 )e3.3.o*, 31e Cour3 3rea3e+ 31e
a03.o* a- a 9e3.3.o* 8or re:.e7 <*o3 certiorari= u*+er Ru2e A5 .* or+er 3o a00or+
-ub-3a*3.a2 ?u-3.0e 3o 31e 9ar3.e-. Ce 7.22 31u- 9ro0ee+ 3o +.-0u-- 31e -ub-3a*3.:e .--ue.
Ma.* I--ue6 Admission of Amended Complaint
)e3.3.o*er- ar/ue 31a3 31e 2o7er 0our3- erre+ .* a+;.33.*/ 31e A;e*+e+ Co;92a.*3. "*+er
31e Ru2e-, a B9ar3y ;ay a;e*+ 1.- 92ea+.*/ o*0e a- a ;a33er o8 r./13 a3 a*y 3.;e be8ore a
re-9o*-.:e 92ea+.*/ .- -er:e+ EEE.G
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[9] C1e* 9r.:a3e re-9o*+e*3 8.2e+ .3- A;e*+e+
Co;92a.*3, Car.--a, 31e o31er 9ar3y!+e8e*+a*3 .* 31e or./.*a2 Co;92a.*3, 1a+ a2rea+y
8.2e+ .3- A*-7er. e0au-e a re-9o*-.:e 92ea+.*/ 1a+ bee* -ub;.33e+, 9e3.3.o*er- 0o*3e*+
31a3 9r.:a3e re-9o*+e*3 -1ou2+ 1a:e 8.r-3 ob3a.*e+ 2ea:e o8 0our3 be8ore 8.2.*/ .3-
A;e*+e+ Co;92a.*3. T1.- .3 8a.2e+ 3o +o. I* a*y e:e*3, -u01 2ea:e 0ou2+ *o3 1a:e bee*
/ra*3e+, a22e/e+2y be0au-e 31e a;e*+;e*3 1a+ -ub-3a*3.a22y a23ere+ 31e 0au-e o8 a03.o*.
T1.- ar/u;e*3 .- *o3 9er-ua-.:e. I3 .- 02ear 31a3 92a.*3.88 <1ere.* 9r.:a3e re-9o*+e*3= 0a*
a;e*+ .3- 0o;92a.*3 o*0e, a- a ;a33er o8 r./13, be8ore a re-9o*-.:e 92ea+.*/ .- 8.2e+.
E
[1H]
Co*3rary 3o 31e 9e3.3.o*er-> 0o*3e*3.o*, 31e 8a03 31a3 Car.--a 1a+ a2rea+y 8.2e+ .3- A*-7er
+.+ *o3 bar 9r.:a3e re-9o*+e*3 8ro; a;e*+.*/ .3- or./.*a2 Co;92a.*3 o*0e, a- a ;a33er o8
r./13, against herein petitioners. I*+ee+, 71ere -o;e bu3 *o3 a22 31e +e8e*+a*3- 1a:e
a*-7ere+, 92a.*3.88- ;ay a;e*+ 31e.r Co;92a.*3 o*0e, a- a ;a33er o8 r./13, .* re-9e03 3o
02a.;- a--er3e+ -o2e2y a/a.*-3 31e *o*!a*-7er.*/ +e8e*+a*3-, bu3 *o3 a- 3o 02a.;- a--er3e+
a/a.*-3 31e o31er +e8e*+a*3-.
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T1e ra3.o*a2e 8or 31e a8ore;e*3.o*e+ ru2e .- .* Se03.o* 3, Ru2e 1H o8 31e Ru2e- o8 Cour3,
71.01 9ro:.+e- 31a3 a83er a re-9o*-.:e 92ea+.*/ 1a- bee* 8.2e+, a* a;e*+;e*3 ;ay be
re?e03e+ 71e* 31e +e8e*-e .- -ub-3a*3.a22y a23ere+.
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9re?u+.0e 31e r./13- o8 31e +e8e*+a*3, .3 a2-o +e2ay- 31e a03.o*. I* 31e 8.r-3 92a0e, 71ere a
9ar3y 1a- *o3 ye3 8.2e+ a re-9o*-.:e 92ea+.*/, 31ere are *o +e8e*-e- 31a3 0a* be a23ere+.
Fur31er;ore, 31e Cour3 1a- 1e2+ 31a3 B[a];e*+;e*3- 3o 92ea+.*/- are /e*era22y 8a:ore+
a*+ -1ou2+ be 2.bera22y a22o7e+ .* 8ur31era*0e o8 ?u-3.0e .* or+er 31a3 e:ery 0a-e ;ay -o
8ar a- 9o--.b2e be +e3er;.*e+ o* .3- rea2 8a03- a*+ .* or+er 3o -9ee+ 31e 3r.a2 o8 0a-e- or
9re:e*3 31e 0.r0u.3y o8 a03.o* a*+ u**e0e--ary eE9e*-e, u*2e-- 31ere are 0.r0u;-3a*0e-
-u01 a- .*eE0u-ab2e +e2ay or 31e 3aD.*/ o8 31e a+:er-e 9ar3y by -ur9r.-e or 31e 2.De, 71.01
;./13 ?u-3.8y a re8u-a2 o8 9er;.--.o* 3o a;e*+.G
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[13]
I* 31e 9re-e*3 0a-e, 9e3.3.o*er- 8a.2e+ 3o 9ro:e 31a3 31ey 7ere 9re?u+.0e+ by 9r.:a3e
re-9o*+e*3>- A;e*+e+ Co;92a.*3. True, Car.--a 1a+ a2rea+y 8.2e+ .3- o7* A*-7er.
)e3.3.o*er-, 1o7e:er, 1a:e *o3 ye3 8.2e+ a*y. Moreo:er, 31ey +o *o3 a22e/e 31a3 31e.r
+e8e*-e .- -.;.2ar 3o 31a3 o8 Car.--a. O* 31e 0o*3rary, 9r.:a3e re-9o*+e*3>- 02a.;- a/a.*-3
31e 2a33er a*+ a/a.*-3 9e3.3.o*er- are +.88ere*3. A/a.*-3 9e3.3.o*er-, 71o-e o88er 3o -e22 31e
-ub?e03 9ar0e2- o8 2a*+ 1a+ a22e/e+2y bee* a00e93e+ by 9r.:a3e re-9o*+e*3, 31e 2a33er .-
-u.*/ 8or -9e0.8.0 9er8or;a*0e a*+ +a;a/e- 8or brea01 o8 0o*3ra03. A231ou/1 9r.:a3e
re-9o*+e*3 0ou2+ *o 2o*/er a;e*+, a- a ;a33er o8 r./13, .3- Co;92a.*3 a/a.*-3 Car.--a, .3
0ou2+ +o -o a/a.*-3 9e3.3.o*er- 71o, a3 31e 3.;e, 1a+ *o3 ye3 8.2e+ a* a*-7er.
T1e a;e*+;e*3 +.+ *o3 9re?u+.0e 31e 9e3.3.o*er- or +e2ay 31e a03.o*. Au contraire, .3
-.;92.8.e+ 31e 0a-e a*+ 3e*+e+ 3o eE9e+.3e .3- +.-9o-.3.o*. T1e A;e*+e+ Co;92a.*3
be0a;e -.;92y a* a03.o* 8or +a;a/e-, -.*0e 31e 02a.;- 8or -9e0.8.0 9er8or;a*0e a*+
+e02ara3.o* o8 *u22.3y o8 31e -a2e 1a:e bee* +e2e3e+.
RTC Had Jurisdiction
)e3.3.o*er- a2-o .*-.-3 31a3 31e RTC o8 4ue5o* C.3y +.+ *o3 1a:e ?ur.-+.03.o* o:er 31e
or./.*a2 Co;92a.*3, 1e*0e, .3 +.+ *o3 1a:e a*y au31or.3y 3o a22o7 31e a;e*+;e*3. T1ey
;a.*3a.* 31a3 31e or./.*a2 a03.o* 8or -9e0.8.0 9er8or;a*0e .*:o2:.*/ 9ar0e2- o8 2a*+ .*
Mo*3a2ba*, R.5a2 -1ou2+ 1a:e bee* 8.2e+ .* 31e RTC o8 31a3 area. T1u-, 31ey 01.+e 31e
CA 8or a22e/e+2y ;.-u*+er-3a*+.*/ 31e +.-3.*03.o* be37ee* territorial jurisdiction a*+
venue, 31ereby erro*eou-2y 1o2+.*/ 31a3 31e RTC 1a+ jurisdiction o:er 31e or./.*a2
Co;92a.*3, a231ou/1 31e venue 7a- .;9ro9er2y 2a.+.
Ce +.-a/ree. True, a* a;e*+;e*3 0a**o3 be a22o7e+ 71e* 31e 0our3 1a- *o ?ur.-+.03.o*
o:er 31e or./.*a2 Co;92a.*3 and 31e 9ur9o-e o8 31e a;e*+;e*3 .- 3o 0o*8er ?ur.-+.03.o* o*
31e 0our3.
E.:
[1A] I* 31e 9re-e*3 0a-e, 1o7e:er, 31e RTC 1a+ ?ur.-+.03.o* be0au-e 31e
or./.*a2 Co;92a.*3 .*:o2:e+ -9e0.8.0 9er8or;a*0e 7.31 +a;a/e-. I* La Tondea
!istillers v. Ponferrada,
E:
[15] 31.- Cour3 ru2e+ 31a3 a 0o;92a.*3 8or B-9e0.8.0 9er8or;a*0e
7.31 +a;a/e-G .- a 9er-o*a2 a03.o* a*+ ;ay be 8.2e+ .* 31e 9ro9er 0our3 71ere a*y o8 31e
9ar3.e- re-.+e, vi".6
BF.*a22y, [7]e are *o3 a2-o 9er-ua+e+ by 9e3.3.o*er>- ar/u;e*3 31a3 :e*ue -1ou2+ be
2o+/e+ .* a/o C.3y 71ere 31e 2o3 .- -.3ua3e+. T1e 0o;92a.*3 .- o*e 8or B-9e0.8.0
9er8or;a*0e 7.31 +a;a/e-.G )r.:a3e re-9o*+e*3- +o *o3 02a.; o7*er-1.9 o8 31e 2o3 bu3 .*
8a03 [re0o/*.5e 31e] 3.32e o8 +e8e*+a*3- by a**o3a3.*/ a *o3.0e o8 lis pendens. I* o*e 0a-e,
a -.;.2ar 0o;92a.*3 8or B-9e0.8.0 9er8or;a*0e 7.31 +a;a/e-G .*:o2:.*/ rea2 9ro9er3y, 7a-
1e2+ 3o be a 9er-o*a2 a03.o*, 71.01 ;ay be 8.2e+ .* 31e 9ro9er 0our3 71ere 31e 9ar3y
re-.+e-. No3 be.*/ a* a03.o* .*:o2:.*/ 3.32e 3o or o7*er-1.9 o8 rea2 9ro9er3y, :e*ue, .*
31.- 0a-e, 7a- *o3 .;9ro9er2y 2a.+ be8ore 31e RTC o8 a0o2o+ C.3y.G
E:.
[1F]
WHEREFORE, 31e )e3.3.o* .- 1ereby !#$%#!. Co-3- a/a.*-3 9e3.3.o*er-.
SO OR#ERE#.
Ro;ero <C1a.r;a*=, $.3u/, )ur.-.;a, a*+ Go*5a/a!Reye-, &&., 0o*0ur.
i
RAFAEL BAUTISTA and LIGAYA ROSEL,
Petitioners,



- versus -




MAYA-MAYA COTTAGES, INC,
Res!ondent
GR No "#$%&"

Present'


PANGANIBAN, J., C(air)an,
SAN*O+AL-GUTIERRE,,
CORONA,
CARPIO MORALES, and
GARCIA, JJ



Pro)u-.ated'

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


R E S O L U T I O N


SAN*O+AL GUTIERRE,, J'

For our reso-ution is t(e instant !etition 5or revie6 on certiorari assai-in. t(e *e7ision8"9
and Reso-ution o5 t(e Court o5 A!!ea-s, dated Nove)/er 0#, 0222 and Ma: %2, 022",
res!e7tive-:, in CA-GR SP No #%3;#
T(e 5a7ts are'
S!ouses Ra5ae- and Li.a:a Bautista, !etitioners (erein, are t(e re.istered o6ners o5 a
%,$3&-s<uare )eter -ot -o7ated at Nati!uan, Nasu./u, Batan.as, as eviden7ed /: Ori.ina-
Certi5i7ate o5 Tit-e =OCT> No P-"#%& issued in t(eir na)es on ?anuar: "3, "1$1 /: t(e
Re.ister o5 *eeds, sa)e !rovin7e
On Ma: "%, "11&, Ma:a-Ma:a Cotta.es, In7 =MMCI>, res!ondent, 5i-ed 6it( t(e
Re.iona- Tria- Court =RTC> o5 Nasu./u, Batan.as a 7o)!-aint 5or 7an7e--ation o5 !etitioners@
tit-e and da)a.es, 6it( a!!-i7ation 5or a !re-i)inar: inAun7tion, do7Beted as Civi- Case No
%;" Res!ondent a--e.ed inter alia t(at C6it(out an: 7o-or o5 ri.(t and t(rou.( du/ious
)eans,D !etitioners 6ere a/-e to o/tain OCT No P-"#%& in t(eir na)es
On Ma: 01, "11&, !etitioners 5i-ed a )otion to dis)iss t(e 7o)!-aint on t(e .round t(at
it does not state a 7ause o5 a7tion T(e: averred t(at res!ondent is a !rivate 7or!oration,
(en7e, dis<ua-i5ied under t(e Constitution809 5ro) a7<uirin. !u/-i7 a-iena/-e -ands e47e!t /:
-ease Res!ondent 7annot t(us /e 7onsidered a rea- !art: in interest
In its Order dated Au.ust %2, "11&, t(e tria- 7ourt .ranted t(e )otion to dis)iss, (o-din.
t(at sin7e t(e !ro!ert: is an a-iena/-e !u/-i7 -and, res!ondent is not <ua-i5ied to a7<uire it
e47e!t /: -ease T(us, it (as no 7ause o5 a7tion
Res!ondent t(en 5i-ed a )otion 5or re7onsideration 6it( )otion 5or -eave to 5i-e an
a)ended 7o)!-aint 5or <uietin. o5 tit-e Res!ondent a--e.ed t(at t(e te7(ni7a- des7ri!tion in
!etitioners@ tit-e does not 7over t(e dis!uted -ot
T(ereu!on, !etitioners 5i-ed t(eir o!!osition, 7ontendin. t(at t(e a)ended 7o)!-aint
does not a-so state a 7ause o5 a7tion and i5 ad)itted, res!ondent@s t(eor: o5 t(e 7ase is
su/stantia--: )odi5ied
On Nove)/er "$, "11&, t(e tria- 7ourt issued an Order den:in. !etitioners@ )otion to
dis)iss, t(us, reversin. its Order o5 Au.ust %2, "11& dis)issin. t(e 7o)!-aint in Civi- Case
No %;"
Petitioners t(en 5i-ed 6it( t(e Court o5 A!!ea-s a s!e7ia- 7ivi- a7tion 5or certiorari and
!ro(i/ition, do7Beted as CA-GR SP No #%3;# T(e: a--e.ed t(at t(e a)ended 7o)!-aint
does not 7ure t(e de5e7t in t(e ori.ina- 7o)!-aint 6(i7( does not state a 7ause o5 a7tion
C-ear-:, in ad)ittin. res!ondent@s a)ended 7o)!-aint, t(e tria- 7ourt 7o))itted .rave a/use
o5 dis7retion a)ountin. to -a7B or e47ess o5 Aurisdi7tion
On Nove)/er 0#, 0222, t(e Court o5 A!!ea-s rendered a *e7ision dis)issin. t(e
!etition 5or certiorari and !ro(i/ition
Petitioners 5i-ed a )otion 5or re7onsideration /ut 6as denied /: t(e A!!e--ate Court in
its Reso-ution o5 Ma: %2, 022"
Een7e, t(e instant !etitioner 5or revie6 on certiorari
T(e so-e issue 5or our reso-ution is 6(et(er t(e Court o5 A!!ea-s erred in (o-din. t(at
t(e tria- 7ourt did not 7o))it .rave a/use o5 dis7retion a)ountin. to -a7B or e47ess o5
Aurisdi7tion in ad)ittin. res!ondent@s a)ended 7o)!-aint
Se7tion 0, Ru-e "2 o5 t(e "11; Ru-es o5 Civi- Pro7edure, as a)ended, !rovides'
CSEC 0 Amendments as a matter of right F A !art: )a: a)end (is
!-eadin. on7e as a matter of right at any time before a responsive pleading
is served or, in t(e 7ase o5 a re!-:, at an: ti)e 6it(in ten ="2> da:s a5ter it is
servedD

T(e a/ove !rovision 7-ear-: s(o6s t(at before the filing of any responsive pleading,
a !art: (as t(e absolute right to a)end (is !-eadin., re.ard-ess o5 6(et(er a ne6 7ause o5
a7tion or 7(an.e in t(eor: is introdu7ed It is sett-ed t(at a )otion to dis)iss is not t(e
res!onsive !-eadin. 7onte)!-ated /: t(e Ru-e8%9 Re7ords s(o6 t(at !etitioners (ad not :et
5i-ed a res!onsive !-eadin. to t(e ori.ina- 7o)!-aint in Civi- Case No %;" G(at t(e: 5i-ed
6as a )otion to dis)iss It 5o--o6s t(at res!ondent, as a !-ainti55, )a: 5i-e an a)ended
7o)!-aint even a5ter t(e ori.ina- 7o)!-aint 6as ordered dis)issed, !rovided t(at t(e order o5
dis)issa- is not :et 5ina-,8#9 as in t(is 7ase
+eri-:, t(e Court o5 A!!ea-s 7orre7t-: (e-d t(at in issuin. t(e assai-ed Order ad)ittin.
t(e a)ended 7o)!-aint, t(e tria- 7ourt did not .rave-: a/use its dis7retion Een7e, neit(er
certiorari nor !ro(i/ition 6ou-d -ie

As to !etitioners@ 7ontention t(at res!ondent 7or!oration is /arred 5ro) a7<uirin. t(e
su/Ae7t -ot, su55i7e it to sa: t(at t(is is a )atter o5 de5ense 6(i7( 7an on-: /e !ro!er-:
deter)ined durin. t(e 5u---/-o6n tria- o5 t(e instant 7ase

WHEREFORE, t(e !etition is DENIED. T(e 7(a--en.ed *e7ision and Reso-ution o5 t(e
Court o5 A!!ea-s in CA-GR SP No #%3;# are FFIR!ED IN TOTO Costs a.ainst
!etitioners
"O ORDERED.
#.R. No. $%&'()* !ar+h ,-, ,)*.
#I/O!IN !RINI%#ON0$E", !etitioner,
vs
HON. #1RD"ON R. $OOD, 2residing 3udge, /ourt of First Instan+e of Ri4al, "i5th
6ran+h 2asig, Ri4al7 /E$I N#E$E"%2"/17 E$I"EO 0RI, ssistant /ler8 of /ourt
of above%mentioned bran+h, as appointed legal representative of de+eased defendant
RFE$ 3. #ON0$E"7 E"9E6N ". N#E$E"7 "2O1"E" RO#E$IO N#E$E" and
"INFORE" "$:DOR N#E$E"7 "2O1"E" RE!EDIO" N#E$E"%FERRER and
F$OREN/IO FERRER7 3I!E N#E$E"7 "2O1"E" 6EN3!IN N#E$E" and
!ER$IN 9ORRE"%/6E and her husband surnamed /6E ;first name un8no<n to
petitioner=, res!ondents
Norberto J. Quisumbing for petitioner.
Laso Beltran & Domondon for respondents.

2DI$$, J.:
T(is is a !etition 5or 7ertiorari to annu- and set aside t(e orders issued /: t(e res!ondent
?ud.e in Civi- Case No "001& o5 t(e t(en Court o5 First Instan7e o5 RiHa-, Pasi. Bran7( +I,
on ="> "0 Fe/ruar: "1;0, 6(i7( denied !etitionerIs O)ni/us MotionJ =0> 03 Mar7( "1;0,
a!!ointin. t(e res!ondent E-iseo ,ari, assistant 7-erB o5 7ourt o5 res!ondent 7ourt, as t(e
-e.a- re!resentative o5 t(e de7eased de5endant Ra5ae- ? GonHa-esJ =%> "# A!ri- "1;0, 6(i7(
denied !etitionerIs )otion 5or re7onsideration o5 t(e Order dated "0 Fe/ruar: "1;0J and =#>
"; Ma: "1;0, 6(i7( denied !etitionerIs )otion 5or re7onsideration o5 t(e Order dated 03
Mar7( "1;0
T(e re7ords s(o6 t(at on "1 Se!te)/er "1&1, t(e (erein !etitioner, Gia7o)ina Marini-
GonHa-es, no6-de7eased and re!resented /: t(e s!e7ia- ad)inistrator o5 (er estate, Att:
Nor/erto ? Kuisu)/in., , 5i-ed a 7o)!-aint a.ainst (er (us/and Ra5ae- ? GonHa-es and
Ce-ia An.e-es-Pas7ua, Este/an S An.e-es, Ro.e-io S An.e-es, Sin5oresa Sa-vador- An.e-es,
Re)edios An.e-es-Ferraer, F-oren7io Ferraer, ?ai)e An.e-es, BenAa)in An.e-es, Mer-ina
Torres-An.e-es, and Lourdes An.e-es-A7a/e and (er (us/and 6(ose 5irst na)e is unBno6n
to t(e !-ainti55, in t(e t(en Court o5 First Instan7e o5 RiHa-, do7Beted as Civi- Case no "001&,
5or t(e annu-)ent o5 a--e.ed-: 5raudu-ent dis!osition i5 various !ro!erties, /ot( rea- and
!ersona-, t(erein -isted, )ade /: t(e said Ra5ae- ? GonHa-es in 5avor o5 (is 7o- de5endants,
a--e.ed-: in 5raud o5 !-ainti55 and in i)!air)ent o5 (er interest in t(e 7onAu.a- !artners(i!
!ro!erties, and 6it(out (er Bno6-ed.e and 7onsent T(e 7o)!-aint a-so asBed 5or da)a.es
>
In ans6er, t(e de5endant Ra5ae- ? GonHa-es 7-ai)ed t(at a-- t(e 7onAu.a- assets 6(i7( are in
(is !ossession 6ere not used in an: 6a: 5or or trans5erred to t(e ot(er de5endantsJ and t(at
t(e !ro!erties o6ned /: (is 7o-de5endants 6ere not derived 5ro) t(e 7onAu.a- !ro!erties
o6ned /: (i) and t(e !-ainti55
&

Eis 7o-de5endants, 5or t(eir !art, a--e.ed t(at t(e !ro!erties -isted in t(e 7o)!-aint 6ere
/ou.(t or a7<uired, not 6it( 5unds 5ro) t(e 7onAu.a- !artners(i! o5 !-ainti55 and de5endant
Ra5ae- ? GonHa-es, /ut 6it( 5unds o5 t(e o6ners t(ereo5
?

Pre-tria- 7on5eren7es 6ere (e-d, and t(erea5ter, t(e de!osition o5 t(e de5endant Ra5ae- ?
GonHa-es 6as taBen in vie6 o5 (is deterioratin. (ea-t( T(e taBin. o5 (is de!osition, (o6ever,
6as not 7o)!-eted /e7ause (e died on 3 Se!te)/er "1;2
On 03 Se!te)/er "1;2, t(e (erein !etitioner, in a !-eadin. entit-ed LNoti7e o5 *eat( o5 Part:
and O)ni/us MotionL noti5ied t(e 7ourt o5 t(e deat( o5 t(e de5endant Ra5ae- ? GonHa-es and
o5 (er a!!oint)ent /: t(e t(en Court o5 First Instan7e o5 RiHa- =KueHon Cit: /ran7(> in
S!e7ia- Pro7eedin. No K-"#$%$ as s!e7ia- ad)inistratri4 o5 (is testate estate, and !ra:ed
t(at s(e /e su/stituted in !-a7e o5 t(e de7easedJ t(at t(e !-eadin.s, )otions and !a!ers,
in7-udin. t(e Ans6er 6it( Counter7-ai) 5i-ed /: t(e de7edent, /e 6it(dra6n and stri7Ben outJ
and t(at s(e /e .ranted -eave to a)end (er o6n 7o)!-aint so as to a--e.e t(erein (er t6o
7a!a7ities and ri.(ts M one, as 6i5e and t6o, as s!e7ia- ad)inistratri4 o5 t(e testate estate o5
t(e -ate Ra5ae- ? GonHa-es
'
Later, t(e !ro/ate 7ourt a!!ointed said !-ainti55 =(erein
!etitioner> as e4e7utri4 in t(e testate estate o5 t(e -ate Ra5ae- ? GonHa-es
-
S(e is a-so t(e
so-e (eir under (is 6i--
.
Considerin. t(e O)ni/us Motion, res!ondent ?ud.e ordered t(e !arties Lto su/)it t(eir
a)ended !-eadin. in a77ordan7e 6it( t(e Ru-es o5 Court 6it(in a !eriod or as soon as
!ossi/-eL
*

Pursuant t(ereto, t(e !etitioner 5i-ed a LCo)!-ian7e and MotionL reiteratin. (er !ra:er 5or t(e
i))ediate .rant o5 (er O)ni/us Motion 5i-ed ear-ier A 7o!: o5 an A)ended Co)!-aint 6as
a!!ended to (er )otion
)

T(e res!ondent ?ud.e, (o6ever, in an Order dated "0 Fe/ruar: "1;0, denied t(e O)ni/us
Motion 5or -a7B o5 )erit ,( Counse- 5or t(e !etitioner re7eived a 7o!: o5 t(e Order on 0&
Fe/ruar: "1;0, and on 03 Mar7( "1;0, (e 5i-ed a )otion 5or re7onsideration o5 said Order ,,
On t(at sa)e da:, 03 Mar7( "1;0, t(e res!ondent ?ud.e, u!on )otion o5 t(e (erein !rivate
res!ondents, issued an Order a!!ointin. Att: E-iseo ,ari, t(e assistant 7-erB o5 7ourt, t(e
-e.a- re!resentative o5 t(e de5endant Ra5ae- ? GonHa-es in t(e 7ase ,> U!on re7ei!t o5 a
7o!: o5 t(is Order, 7ounse- 5or t(e !etitioner a-so 5i-ed a )otion 5or its re7onsideration, and
6(en /ot( )otions 5or re7onsideration 6ere denied on "# A!ri- "1;0 ,& and "; Ma: "1;0, ,?
res!e7tive-:, (e 5i-ed t(e instant !etition 5or 7ertiorari 6it( t(is Court
T(e !etition 6as .iven due 7ourse ,' and on 02 Mar7( "1;%, t(is 7ourt, u!on a!!-i7ation o5
t(e !etitioner, issued a te)!orar: restrainin. order restrainin. t(e res!ondent ?ud.e 5ro)
!ro7eedin. 6it( t(e initia- re7e!tion o5 eviden7e in Civi- Case No "001; o5 t(e Court o5 First
Instan7e o5 RiHa-, Bran7( +I, Pasi. ,-
T(e 5irst issue raised /: t(e !etitioner is 6(et(er or not t(e res!ondent ?ud.e a7ted 6it(
.rave a/use o5 dis7retion in den:in. t(e !ro!osed a)end)ent to t(e !etitionerIs 7o)!-aint to
t(e end t(at s(e, as s!e7ia- ad)inistratri4, -ater, e4e7utri4 o5 t(e testate estate o5 (er -ate
(us/and Ra5ae- ? GonHa-es, /e a--o6ed to 6it(dra6 t(e Ans6er 6it( Counter7-ai) 5i-ed /:
said de7eased durin. (is -i5eti)e and t(en Aoin 7ause 6it( (er, as !-ainti55
T(e -a6 a!!-i7a/-e is Se7tion ", Ru-e "2 o5 t(e Ru-es o5 Court 6(i7( !rovides as 5o--o6s'
Se7 % Amendments by leave of Court M A5ter t(e 7ase is set 5or (earin.,
su/stantia- a)end)ents )a: /e )ade on-: u!on -eave o5 7ourt But su7( -eave
)a: /e re5used i5 it a!!ears to t(e 7ourt t(at t(e )otion 6as )ade 6it( intent to
de-a: t(e a7tion or t(at t(e 7ause o5 a7tion or de5ense is su/stantia--: a-tered
Orders o5 t(e 7ourt u!on t(e )atters !rovided in t(is se7tion s(a-- /e )ade
u!on )otion 5i-ed in 7ourt, And a5ter noti7e to t(e adverse !art:, and an
o!!ortunit: to /e (eard
LiBe6ise a!!-i7a/-e is t(e -a6 on esto!!e- to t(e e55e7t t(at M
A !art: 6(o (as, 6it( Bno6-ed.e o5 t(e 5a7ts, assu)ed a !arti7u-ar !osition in
Audi7ia- !ro7eedin.s, and (as su77eeded in )aintainin. t(at !osition, is
esto!!ed to assu)e a !osition in7onsistent t(ere6it( to t(e !reAudi7e o5 t(e
adverse !art: It is essentia- a-so t(at t(e !art:, 7-ai)in. t(e esto!!e- s(ou-d
(ave a7ted in re-ian7e t(ereon, and t(at (is ri.(ts 6ou-d /e inAurious-: a55e7ted i5
(is o!!onent 6ere !er)itted to 7(an.e (is !osition G(en no 6ron. is done a
7(an.e in !osition s(ou-d and 6i-- /e a--o6ed T(e ru-e (as no a!!-i7ation 6(ere
t(e Bno6-ed.e or )eans o5 Bno6-ed.e o5 /ot( !arties is e<ua- nor in 7ase o5
)istaBe A-so t(e ru-e (as no a!!-i7ation to 7(an.e a !osition 6it( res!e7t to
)atters o5 -a6 ,.
T(ere is no dou/t t(at t(e !ro!osed a)end)ents to t(e !etitionerIs 7o)!-aint 6ou-d a-ter t(e
!osition o5 Ra5ae- ? GonHa-es, 5ro) t(at o5 de5endant to t(at o5 !-ainti55 But, 6(i-e t(e
a5ore<uoted !rovisions o5 t(e Ru-es o5 Court aut(oriHe t(e 7ourts to disa--o6 a)end)ent o5
!-eadin.s 6(en it a!!ears t(at t(e sa)e is )ade to de-a: an a7tion or t(at t(e 7ause o5
a7tion or de5ense is su/stantia--: a-tered t(ere/: t(e ru-e is not a/so-ute Courts are not
!re7-uded 5ro) a--o6in. a)end)ents o5 !-eadin.s even i5 t(e sa)e 6i-- su/stantia--: 7(an.e
t(e 7ause o5 a7tion or de5ense !rovided t(at su7( a)end)ents do not resu-t in a su/stantia-
inAur: to t(e adverse !art: T(is is due to t(e !er)issive 7(ara7ter o5 said ru-e In 5a7t, t(is
Court (as ru-ed t(at a)end)ents to !-eadin.s are 5avored and s(ou-d /e -i/era--: a--o6ed in
t(e 5urt(eran7e o5 Austi7e ,*
T(e sa)e is true 6it( t(e !rin7i!-e o5 esto!!e-, Aust )entioned It is essentia- t(at t(e ri.(ts o5
t(e adverse !art: 6ou-d /e serious-: a55e7ted in order to disa--o6 a 7(an.e in !osition, /ut,
6(en no 6ron. is done, a 7(an.e in !osition )a: /e a--o6ed
Ge (ave e4a)ined t(e re7ords o5 t(is 7ase and 6e 5ind no reason, nor (ave t(e !rivate
res!ondents s(o6n an:, 6(i7( 6ou-d serve as a /asis 5or a 5indin. t(at t(e: =!rivate
res!ondents> 6ou-d su55er su/stantia- inAur: i5 t(e !ro!osed a)end)ents 6ere a--o6ed T(e
)ere 7(an.e in t(e !osition o5 t(e de7eased Ra5ae- ? GonHa-es, 5ro) de5endant to !-ainti55,
6i-- not, /: itse-5, -end 7reden7e to t(e a--e.ation o5 t(e !etitioner in (er 7o)!-aint t(at t(e
!ro!erties -isted in t(e 7o)!-aint /e-on.ed to t(e 7onAu.a- !artners(i! o5 t(e !etitioner and
Ra5ae- ? GonHa-es and t(at t(e: 6ere 5raudu-ent-: trans5erred to t(e !rivate res!ondents, nor
6i-- it di)inis( t(e !rivate res!ondentsI 7-ai) t(at t(e said !ro!erties 6ere /ou.(t or a7<uired
/: t(e) 6it( t(eir o6n 5unds T(e !arties, in 5a7t, (ave :et to !rove t(eir res!e7tive
a--e.ations
On t(e ot(er (and, to disa--o6 t(e a)end)ents !ro!osed /: t(e !etitioner 6ou-d resu-t in
so)e a/surdit: As 6i5e and t(en as e4e7utri4 and so-e (eir o5 t(e -ate Ra5ae- ? GonHa-es,
t(e !etitioner 6ou-d /e I.ivin. 6it( one (and and a-so re7eivin. 6it( t(e ot(er in t(e event
t(at Aud.)ent 6ere to /e rendered 5or or a.ainst t(e de7eased de5endant
T(e ot(er issue raised is 6(et(er or not t(e res!ondent ?ud.e a/used (is dis7retion in
orderin. t(e res!ondent E-iseo ,ari to re!resent t(e de7eased Ra5ae- ? GonHa-es as !art:
de5endant in t(is 7ase T(e !etitioner 7ontends t(at t(e a!!oint)ent o5 anot(er -e.a-
re!resentative 5or t(e -ate Ra5ae- ? GonHa-es is nun and void in vie6 o5 (er a!!oint)ent as
t(e s!e7ia- ad)inistratri4, -ater, e4e7utri4 o5 t(e testate estate o5 Ra5ae- ? GonHa-es, not to
)ention t(at s(e is t(e so-e (eir under (is 6i-- ,)
Ge a.ree 6it( !etitionerIs 7ontention Under t(e !rovisions o5 Se7tion 0, Ru-e $; o5 t(e Ru-es
o5 Court, it is t(e e4e7utor or ad)inistrator o5 t(e estate o5 t(e de7edent 6(o )a: /rin. or
de5end a7tions in t(e na)e o5 t(e de7eased, and ti--s Court (as ru-ed t(at t(e 7(oi7e o5 an
e4e7utor is t(e so-e !rero.ative o5 t(e testator and is not address to t(e dis7retion o5 t(e
7ourt In t(e 7ase o5 !aeta vs. "ecson,
>(
t(is Court said'
T(e 7(oi7e o5 (is e4e7utor is a !re7ious !rero.ative o5 a testator, a ne7essar:
7on7o)itant o5 (is ri.(t to dis!ose o5 (is !ro!ert: in t(e )anner (e 6is(es It is
natura- t(at t(e testator s(ou-d desire to a!!oint one o5 (is 7on5iden7e, one 6(o
7an /e trusted to 7arr: out (is 6is(es in t(e dis!osa- o5 (is estate T(e
7urtai-)ent o5 t(is ri.(t )a: /e 7onsidered as a 7urtai-)ent o5 t(e ri.(ts to
dis!ose And as t(e ri.(ts .ranted /: (i) 6i-- taBe e55e7t 5ro) t(e ti)e o5 (is
deat( =Arti7-e ;;;, Civi- Code o5 t(e P(i-i!!ines>, t(e )ana.e)ent o5 (is estate
/: t(e ad)inistrator o5 (is 7(oi7e s(ou-d /e )ade as soon as !ra7ti7a/-e, 6(en
no reasona/-e o/Ae7tion to (is assu)!tion o5 t(e trust 7an /e inter!osed an:
-on.er It (as /een (e-d t(at 6(en a 6i-- (as /een ad)itted to !ro/ate, it is t(e
dut: o5 t(is 7ourt to issue -etters testa)entar: to t(e !erson na)ed as e4e7utor
u!on (is a!!-i7ation =0% C? "20%> It is t(e testator t(at a!!oints (is e4e7utor,
as t(e <uestion as to (is !e7u-iar 5itness 5or su7( !osition or (is 6ant o5 a/i-it: to
)ana.e t(e estate 7annot /e addressed to t(e dis7retion o5 t(e 7ount: Aud.e
=Eo-/rooB vs Eead, & SG 310, 31%, 1 N: ;33>
Furt(er)ore, t(e Aoinder o5 t(e de7eased Ra5ae- ? GonHa-es as !art: de5endant is no -on.er
ne7essar: and )a: /e dis!ensed 6it(, sin7e no 7ross-7-ai) (as /een 5i-ed a.ainst (i) /: (is
7o-de5endants =!rivate res!ondents (erein>J and t(e !etitionerIs ri.(t under Arti7-e ";% o5 t(e
Civi- Code )a: /e en5or7ed a.ainst t(ird !ersons even 6it(out Aoinin. (er (us/and as !art:
de5endant
Ge 5ind 5ro) an t(e 5ore.oin., and so ru-e, t(at t(e res!ondent ?ud.e .rave-: a/used (is
dis7retion in den:in. t(e !etitionerIs O)ni/us Motion Courts s(ou-d /e -i/era- in a--o6in.
a)end)ents to !-eadin.s, es!e7ia--: 6(ere su7( a)end)ents 6i-- serve t(e ends o5 Austi7e
and avoid )u-ti!-it: o5 suits
GEEREFORE, t(e !etition is GRANTE* and a 6rit issued, annu--in. and settin. aside t(e
Orders issued /: t(e res!ondent ?ud.e in Civi- Case no "001& o5 t(e t(en Court o5 First
Instan7e o5 RiHa- Bran7( +I, Pasi., on "0 Fe/ruar: "1;0, 03 Mar7( "1;0, "# A!ri- "1;0, and
"; Ma: "1;0 T(e te)!orar: restrainin. order, ear-ier issued /: t(is Court, is (ere/: )ade
!er)anent Costs a.ainst !rivate res!ondents
SO OR*ERE*
#ernan $Chairman%& 'utierre!& Jr.& "aras& Bidin and Cortes& JJ.& concur.
Alampay& J.& too( no part.
ii
iii
iv
v
vi
vii
viii
i4
ESGAGMAN EOTELS AN* TRA+EL, INC, petitioner& vs. EON COURT OF APPEALS, and
NEAL B CERISTIAN, respondents
* E C I S I O N
*A+I*E, ?R, CJ.'
Ma: a 7o)!-aint t(at -a7Bs a 7ause o5 a7tion at t(e ti)e it 6as 5i-ed /e 7ured /: t(e a77rua- o5
a 7ause o5 a7tion durin. t(e !enden7: o5 t(e 7aseO T(is is t(e /asi7 issue raised in t(is
!etition 5or t(e Court@s 7onsideration
So)eti)e in "11& and "11;, !etitioner S6a.)an Eote-s and Trave-, In7, t(rou.( Att:
Leonor L In5ante and Rodne: *avid Ee.ert:, its !resident and vi7e-!resident, res!e7tive-:,
o/tained 5ro) !rivate res!ondent Nea- B C(ristian -oans eviden7ed /: t(ree !ro)issor:
notes dated ; Au.ust "11&, "# Mar7( "11;, and "# ?u-: "11; Ea7( o5 t(e !ro)issor: notes
is in t(e a)ount o5 USP32,222 !a:a/-e a5ter t(ree :ears 5ro) its date 6it( an interest o5 "3Q
!er annu) !a:a/-e ever: t(ree )ont(s8"9 In a -etter dated "& *e7e)/er "11$, C(ristian
in5or)ed t(e !etitioner 7or!oration t(at (e 6as ter)inatin. t(e -oans and de)anded 5ro) t(e
-atter !a:)ent in t(e tota- a)ount o5 USP"32,222 !-us un!aid interests in t(e tota- a)ount o5
USP"%,322809
On 0 Fe/ruar: "111, !rivate res!ondent C(ristian 5i-ed 6it( t(e Re.iona- Tria- Court o5 Ba.uio
Cit:, Bran7( 31, a 7o)!-aint 5or a su) o5 )one: and da)a.es a.ainst t(e !etitioner
7or!oration, Ee.ert:, and Att: In5ante T(e 7o)!-aint a--e.ed as 5o--o6s' On ; Au.ust "11&,
"# Mar7( "11;, and "# ?u-: "11;, t(e !etitioner, as 6e-- as its !resident and vi7e-!resident
o/tained -oans 5ro) (i) in t(e tota- a)ount o5 USP"32,222 !a:a/-e a5ter t(ree :ears, 6it( an
interest o5 "3Q !er annu) !a:a/-e <uarter-: or ever: t(ree )ont(s For a 6(i-e, t(e: !aid an
interest o5 "3Q !er annu) ever: t(ree )ont(s in a77ordan7e 6it( t(e t(ree !ro)issor:
notes Eo6ever, startin. ?anuar: "11$ unti- *e7e)/er "11$, t(e: !aid (i) on-: an interest o5
&Q !er annu), instead o5 "3Q !er annu), in vio-ation o5 t(e ter)s o5 t(e t(ree !ro)issor:
notes T(us, C(ristian !ra:ed t(at t(e tria- 7ourt order t(e) to !a: (i) Aoint-: and so-idari-:
t(e a)ount o5 USP"32,222 re!resentin. t(e tota- a)ount o5 t(e -oansJ USP"%,322
re!resentin. un!aid interests 5ro) ?anuar: "11$ unti- *e7e)/er "11$J P"22,222 5or )ora-
da)a.esJ P32,222 5or attorne:@s 5eesJ and t(e 7ost o5 t(e suit8%9
T(e !etitioner 7or!oration, to.et(er 6it( its !resident and vi7e-!resident, 5i-ed an Ans6er
raisin. as de5enses -a7B o5 7ause o5 a7tion and novation o5 t(e !rin7i!a- o/-i.ations
A77ordin. to t(e), C(ristian (ad no 7ause o5 a7tion /e7ause t(e t(ree !ro)issor: notes 6ere
not :et due and de)anda/-e In *e7e)/er "11;, sin7e t(e !etitioner 7or!oration 6as
e4!erien7in. (u.e -osses due to t(e Asian 5inan7ia- 7risis, C(ristian a.reed =a> to 6aive t(e
interest o5 "3Q !er annu), and =/> a77e!t !a:)ents o5 t(e !rin7i!a- -oans in insta--)ent
/asis, t(e a)ount and !eriod o5 6(i7( 6ou-d de!end on t(e state o5 /usiness o5 t(e !etitioner
7or!oration T(us, t(e !etitioner !aid C(ristian 7a!ita- re!a:)ent in t(e a)ount o5 USP;32
!er )ont( 5ro) ?anuar: "11$ unti- t(e ti)e t(e 7o)!-aint 6as 5i-ed in Fe/ruar: "111 T(e
!etitioner and its 7o-de5endants t(en !ra:ed t(at t(e 7o)!-aint /e dis)issed and t(at
C(ristian /e ordered to !a: P" )i--ion as )ora- da)a.esJ P322,222 as e4e)!-ar: da)a.esJ
and P"22,222 as attorne:@s 5ees8#9
In due 7ourse and a5ter (earin., t(e tria- 7ourt rendered a de7ision839 on 3 Ma: 0222
de7-arin. t(e 5irst t6o !ro)issor: notes dated ; Au.ust "11& and "# Mar7( "11; as a-read:
due and de)anda/-e and t(at t(e interest on t(e -oans (ad /een redu7ed /: t(e !arties 5ro)
"3Q to &Q !er annu) It t(en ordered t(e !etitioner 7or!oration to !a: C(ristian t(e a)ount
o5 P"22,222 re!resentin. t(e !rin7i!a- o/-i.ation 7overed /: t(e !ro)issor: notes dated ;
Au.ust "11& and "# Mar7( "11;, C!-us interest o5 &Q !er )ont( t(ereon unti- 5u--: !aid, 6it(
a-- interest !a:)ents a-read: !aid /: t(e de5endant to t(e !-ainti55 to /e dedu7ted t(ere5ro)D
T(e tria- 7ourt ratio7inated in t(is 6ise'
="> T(ere 6as no novation o5 de5endant@s o/-i.ation to t(e !-ainti55 Under Arti7-e "010 o5 t(e
Civi- Code, t(ere is an i)!-ied novation on-: i5 t(e o-d and t(e ne6 o/-i.ation /e on ever:
!oint in7o)!ati/-e 6it( one anot(er
T(e test o5 in7o)!ati/i-it: /et6een t(e t6o o/-i.ations or 7ontra7ts, a77ordin. to an i))inent
aut(or, is 6(et(er t(e: 7an stand to.et(er, ea7( one (avin. an inde!endent e4isten7e I5 t(e:
7annot, t(e: are in7o)!ati/-e, and t(e su/se<uent o/-i.ation novates t(e 5irst =To-entino, Civi-
Code o5 t(e P(i-i!!ines, +o- I+, "11" ed, ! %$#> Ot(er6ise, t(e o-d o/-i.ation 6i-- 7ontinue
to su/sist su/Ae7t to t(e )odi5i7ations a.reed u!on /: t(e !arties T(us, it (as /een 6ritten
t(at a77identa- )odi5i7ations in an e4istin. o/-i.ation do not e4tin.uis( it /: novation Mere
)odi5i7ations o5 t(e de/t a.reed u!on /et6een t(e !arties do not 7onstitute novation G(en
t(e 7(an.es re5er to se7ondar: a.ree)ent and not to t(e o/Ae7t or !rin7i!a- 7onditions o5 t(e
7ontra7t, t(ere is no novationJ su7( 7(an.es 6i-- !rodu7e )odi5i7ations o5 in7identa- 5a7ts, /ut
6i-- not e4tin.uis( t(e ori.ina- o/-i.ation T(us, t(e a77e!tan7e o5 !artia- !a:)ents or a !artia-
re)ission does not invo-ve novation =id, ! %$;> Neit(er does t(e redu7tion o5 t(e a)ount o5
an o/-i.ation a)ount to a novation /e7ause it on-: )eans a !artia- re)ission or 7ondonation
o5 t(e sa)e de/t
In t(e instant 7ase, t(e Court is o5 t(e vie6 t(at t(e !arties )ere-: intended to 7(an.e t(e rate
o5 interest 5ro) "3Q !er annu) to &Q !er annu) 6(en t(e de5endant started !a:in. P;32
!er )ont( 6(i7( !a:)ents 6ere a-- a77e!ted /: t(e !-ainti55 5ro) ?anuar: "11$ on6ard T(e
!a:)ent o5 t(e !rin7i!a- o/-i.ation, (o6ever, re)ains una55e7ted 6(i7( )eans t(at t(e
de5endant s(ou-d sti-- !a: t(e !-ainti55 P32,222 on Au.ust 1, "111, Mar7( "#, 0222 and ?u-:
"#, 0222
=0> G(en t(e instant 7ase 6as 5i-ed on Fe/ruar: 0, "111, none o5 t(e !ro)issor: notes 6as
due and de)anda/-e As o5 t(is date (o6ever, t(e 5irst and t(e se7ond !ro)issor: notes (ave
a-read: )atured Een7e, !a:)ent is a-read: due
Under Se7tion 3 o5 Ru-e "2 o5 t(e "11; Ru-es o5 Civi- Pro7edure, a 7o)!-aint 6(i7( states no
7ause o5 a7tion )a: /e 7ured /: eviden7e !resented 6it(out o/Ae7tion T(us, even i5 t(e
!-ainti55 (ad no 7ause o5 a7tion at t(e ti)e (e 5i-ed t(e instant 7o)!-aint, as de5endants@
o/-i.ation are not :et due and de)anda/-e t(en, (e )a: nevert(e-ess re7over on t(e 5irst t6o
!ro)issor: notes in vie6 o5 t(e introdu7tion o5 eviden7e s(o6in. t(at t(e o/-i.ations 7overed
/: t(e t6o !ro)issor: notes are no6 due and de)anda/-e
=%> Individua- de5endants Rodne: Ee.ert: and Att: Leonor L In5ante 7an not /e (e-d
!ersona--: -ia/-e 5or t(e o/-i.ations 7ontra7ted /: t(e de5endant 7or!oration it /ein. 7-ear t(at
t(e: )ere-: a7ted in re!resentation o5 t(e de5endant 7or!oration in t(eir 7a!a7it: as Genera-
Mana.er and President, res!e7tive-:, 6(en t(e: si.ned t(e !ro)issor: notes as eviden7ed
/: Board Reso-ution No "=1#> !assed /: t(e Board o5 *ire7tors o5 t(e de5endant 7or!oration
=E4(i/it C#D>8&9
In its de7ision8;9 o5 3 Se!te)/er 022%, t(e Court o5 A!!ea-s denied !etitioner@s a!!ea- and
a55ir)ed in toto t(e de7ision o5 t(e tria- 7ourt, (o-din. as 5o--o6s'
In t(e 7ase at /en7(, t(ere is no in7o)!ati/i-it: /e7ause t(e 7(an.es re5erred to /: a!!e--ant
S6a.)an 7onsist on-: in t(e )anner o5 !a:)ent
A!!e--ant S6a.)an@s inter!retation t(at t(e t(ree =%> !ro)issor: notes (ave /een novated /:
reason o5 a!!e--ee C(ristian@s a77e!tan7e o5 t(e )ont(-: !a:)ents o5 USP;3222 as 7a!ita-
re!a:)ents 7ontinuous-: even a5ter t(e 5i-in. o5 t(e instant 7ase is a -itt-e /it strained
7onsiderin. t(e sti55 re<uire)ents o5 t(e -a6 on novation t(at t(e intention to novate )ust
a!!ear /: e4!ress a.ree)ent o5 t(e !arties, or /: t(eir a7ts t(at are too 7-ear and
une<uivo7a- to /e )istaBen Under t(e 7ir7u)stan7es, t(e )ore reasona/-e inter!retation o5
t(e a7t o5 t(e a!!e--ee C(ristian in re7eivin. t(e )ont(-: !a:)ents o5 USP;3222 is t(at
a!!e--ee C(ristian )ere-: a--o6ed a!!e--ant S6a.)an to !a: 6(atever a)ount t(e -atter is
7a!a/-e o5 T(is inter!retation is su!!orted /: t(e -etter o5 de)and dated *e7e)/er "&, "11$
6(erein a!!e--ee C(ristian de)anded 5ro) a!!e--ant S6a.)an to return t(e !rin7i!a- -oan in
t(e a)ount o5 USP"32,222 !-us un!aid interest in t(e a)ount o5 USP"%,32222

A!!e--ant S6a.)an, -iBe6ise, 7ontends t(at, at t(e ti)e o5 t(e 5i-in. o5 t(e 7o)!-aint, a!!e--ee
C(ristian (a8d9 no 7ause o5 a7tion /e7ause none o5 t(e !ro)issor: notes 6as due and
de)anda/-e
A.ain, Ge are not !ersuaded

In t(e 7ase at /en7(, 6(i-e it is true t(at a!!e--ant S6a.)an raised in its Ans6er t(e issue o5
!re)aturit: in t(e 5i-in. o5 t(e 7o)!-aint, a!!e--ant S6a.)an nonet(e-ess 5ai-ed to o/Ae7t to
a!!e--ee C(ristian@s !resentation o5 eviden7e to t(e e55e7t t(at t(e !ro)issor: notes (ave
/e7o)e due and de)anda/-e
T(e a5ore-<uoted ru-e a--o6s a 7o)!-aint 6(i7( states no 7ause o5 a7tion to /e 7ured eit(er
/: eviden7e !resented 6it(out o/Ae7tion or, in t(e event o5 an o/Ae7tion sustained /: t(e
7ourt, /: an a)end)ent o5 t(e 7o)!-aint 6it( -eave o5 7ourt =Eerrera, Re)edia- La6, +o- +II,
"11; ed, ! "2$>8$9
Its )otion 5or re7onsideration (avin. /een denied /: t(e Court o5 A!!ea-s in its Reso-ution o5
# *e7e)/er 022%,819 t(e !etitioner 7a)e to t(is Court raisin. t(e 5o--o6in. issues'
I GEERE TEE *ECISION OF TEE TRIAL COURT *ROPPING TGO *EFEN*ANTS
EAS BECOME FINAL AN* ERECUTORY, MAY TEE RESPON*ENT COURT OF APPEALS
STILL STUBBORNLY CONSI*ER TEEM AS APPELLANTS GEEN TEEY *I* NOT
APPEALO
II GEERE TEERE IS NO CAUSE OF ACTION, IS TEE *ECISION OF TEE LOGER
COURT +ALI*O
III MAY TEE RESPON*ENT COURT OF APPEALS +ALI*LY AFFIRM A *ECISION OF
TEE LOGER COURT GEICE IS IN+ALI* *UE TO LACN OF CAUSE OF ACTIONO
I+ GEERE TEERE IS A +ALI* NO+ATION, MAY TEE ORIGINAL TERMS OF
CONTRACT GEICE EAS BEEN NO+ATE* STILL PRE+AILO8"29
T(e !etitioner (ar!s on t(e a/sen7e o5 a 7ause o5 a7tion at t(e ti)e t(e !rivate res!ondent@s
7o)!-aint 6as 5i-ed 6it( t(e tria- 7ourt In 7onne7tion 6it( t(is, t(e !etitioner raises t(e issue
o5 novation /: ar.uin. t(at its o/-i.ations under t(e t(ree !ro)issor: notes 6ere novated /:
t(e rene.otiation t(at (a!!ened in *e7e)/er "11; 6(erein t(e !rivate res!ondent a.reed to
6aive t(e interest in ea7( o5 t(e t(ree !ro)issor: notes and to a77e!t USP;32 !er )ont( as
insta--)ent !a:)ent 5or t(e !rin7i!a- -oans in t(e tota- a)ount o5 USP"32,222 Last-:, t(e
!etitioner <uestions t(e a7t o5 t(e Court o5 A!!ea-s in 7onsiderin. Ee.ert: and In5ante as
a!!e--ants 6(en t(e: no -on.er a!!ea-ed /e7ause t(e tria- 7ourt (ad a-read: a/so-ved t(e)
o5 t(e -ia/i-it: o5 t(e !etitioner 7or!oration
On t(e ot(er (and, t(e !rivate res!ondent asserts t(at t(is !etition is Ca )ere !-o: to 7ontinue
de-a:in. t(e !a:)ent o5 a Aust o/-i.ationD Anent t(e 5a7t t(at Ee.ert: and Att: In5ante 6ere
7onsidered /: t(e Court o5 A!!ea-s as a!!e--ants, t(e !rivate res!ondent 5inds it i))ateria-
/e7ause t(e: are not a55e7ted /: t(e assai-ed de7ision an:6a:
Cause o5 a7tion, as de5ined in Se7tion 0, Ru-e 0 o5 t(e "11; Ru-es o5 Civi- Pro7edure, is t(e
a7t or o)ission /: 6(i7( a !art: vio-ates t(e ri.(t o5 anot(er Its essentia- e-e)ents are as
5o--o6s'
" A ri.(t in 5avor o5 t(e !-ainti55 /: 6(atever )eans and under 6(atever -a6 it arises or is
7reatedJ
0 An o/-i.ation on t(e !art o5 t(e na)ed de5endant to res!e7t or not to vio-ate su7( ri.(tJ
and
% A7t or o)ission on t(e !art o5 su7( de5endant in vio-ation o5 t(e ri.(t o5 t(e !-ainti55 or
7onstitutin. a /rea7( o5 t(e o/-i.ation o5 t(e de5endant to t(e !-ainti55 5or 6(i7( t(e -atter )a:
)aintain an a7tion 5or re7over: o5 da)a.es or ot(er a!!ro!riate re-ie58""9
It is, t(us, on-: u!on t(e o77urren7e o5 t(e -ast e-e)ent t(at a 7ause o5 a7tion arises, .ivin.
t(e !-ainti55 t(e ri.(t to )aintain an a7tion in 7ourt 5or re7over: o5 da)a.es or ot(er
a!!ro!riate re-ie5
It is undis!uted t(at t(e t(ree !ro)issor: notes 6ere 5or t(e a)ount o5 P32,222 ea7( and
uni5or)-: !rovided 5or ="> a ter) o5 t(ree :earsJ =0> an interest o5 "3 Q !er annu), !a:a/-e
<uarter-:J and =%> t(e re!a:)ent o5 t(e !rin7i!a- -oans a5ter t(ree :ears 5ro) t(eir res!e7tive
dates Eo6ever, /ot( t(e Court o5 A!!ea-s and t(e tria- 7ourt 5ound t(at a rene.otiation o5 t(e
t(ree !ro)issor: notes indeed (a!!ened in *e7e)/er "11; /et6een t(e !rivate res!ondent
and t(e !etitioner resu-tin. in t(e redu7tion F not 6aiver F o5 t(e interest 5ro) "3Q to &Q !er
annu), 6(i7( 5ro) t(en on 6as !a:a/-e )ont(-:, instead o5 <uarter-: T(e ter) o5 t(e
!rin7i!a- -oans re)ained un7(an.ed in t(at t(e: 6ere sti-- due t(ree :ears 5ro) t(e res!e7tive
dates o5 t(e !ro)issor: notes T(us, at t(e ti)e t(e 7o)!-aint 6as 5i-ed 6it( t(e tria- 7ourt on
0 Fe/ruar: "111, none o5 t(e t(ree !ro)issor: notes 6as due :etJ a-t(ou.(, t6o o5 t(e
!ro)issor: notes 6it( t(e due dates o5 ; Au.ust "111 and "# Mar7( 0222 )atured durin. t(e
!enden7: o5 t(e 7ase 6it( t(e tria- 7ourt Bot( 7ourts a-so 5ound t(at t(e !etitioner (ad /een
re-i.ious-: !a:in. t(e !rivate res!ondent USP;32 !er )ont( 5ro) ?anuar: "11$ and even
durin. t(e !enden7: o5 t(e 7ase /e5ore t(e tria- 7ourt and t(at t(e !rivate res!ondent (ad
a77e!ted a-- t(ese )ont(-: !a:)ents
Git( t(ese 5indin.s o5 5a7ts, it (as /e7o)e .-arin.-: o/vious t(at 6(en t(e 7o)!-aint 5or a
su) o5 )one: and da)a.es 6as 5i-ed 6it( t(e tria- 7ourt on 0 Fe/ruar: "111, no 7ause o5
a7tion (as as :et e4isted /e7ause t(e !etitioner (ad not 7o))itted an: a7t in vio-ation o5 t(e
ter)s o5 t(e t(ree !ro)issor: notes as )odi5ied /: t(e rene.otiation in *e7e)/er "11;
Git(out a 7ause o5 a7tion, t(e !rivate res!ondent (ad no ri.(t to )aintain an a7tion in 7ourt,
and t(e tria- 7ourt s(ou-d (ave t(ere5ore dis)issed (is 7o)!-aint
*es!ite its 5indin. t(at t(e !etitioner 7or!oration did not vio-ate t(e )odi5ied ter)s o5 t(e t(ree
!ro)issor: notes and t(at t(e !a:)ent o5 t(e !rin7i!a- -oans 6ere not :et due 6(en t(e
7o)!-aint 6as 5i-ed, t(e tria- 7ourt did not dis)iss t(e 7o)!-aint, 7itin. Se7tion 3, Ru-e "2 o5
t(e "11; Ru-es o5 Civi- Pro7edure, 6(i7( reads'
Se7tion 3 Amendment to conform to or authori!e presentation of evidence M G(en issues
not raised /: t(e !-eadin.s are tried 6it( t(e e4!ress or i)!-ied 7onsent o5 t(e !arties, t(e:
s(a-- /e treated in a-- res!e7ts as i5 t(e: (ad /een raised in t(e !-eadin.s Su7( a)end)ent
o5 t(e !-eadin.s as )a: /e ne7essar: to 7ause t(e) to 7on5or) to t(e eviden7e and to raise
t(ese issues )a: /e )ade u!on )otion o5 an: !art: at an: ti)e, even a5ter Aud.)entJ /ut
5ai-ure to a)end does not a55e7t t(e resu-t o5 t(e tria- o5 t(ese issues I5 eviden7e is o/Ae7ted
to at t(e tria- on t(e .round t(at it is not 6it(in t(e issues )ade /: t(e !-eadin.s, t(e 7ourt
)a: a--o6 t(e !-eadin.s to /e a)ended and s(a-- do so 6it( -i/era-it: i5 t(e !resentation o5
t(e )erits o5 t(e a7tion and t(e ends o5 su/stantia- Austi7e 6i-- /e su/served t(ere/: T(e
7ourt )a: .rant a 7ontinuan7e to ena/-e t(e a)end)ent to /e )ade
A77ordin. to t(e tria- 7ourt, and sustained /: t(e Court o5 A!!ea-s, t(is Se7tion a--o6s a
7o)!-aint t(at does not state a 7ause o5 a7tion to /e 7ured /: eviden7e !resented 6it(out
o/Ae7tion durin. t(e tria- T(us, it ru-ed t(at even i5 t(e !rivate res!ondent (ad no 7ause o5
a7tion 6(en (e 5i-ed t(e 7o)!-aint 5or a su) o5 )one: and da)a.es /e7ause none o5 t(e
t(ree !ro)issor: notes 6as due :et, (e 7ou-d nevert(e-ess re7over on t(e 5irst t6o
!ro)issor: notes dated ; Au.ust "11& and "# Mar7( "11;, 6(i7( /e7a)e due durin. t(e
!enden7: o5 t(e 7ase in vie6 o5 t(e introdu7tion o5 eviden7e o5 t(eir )aturit: durin. t(e tria-
Su7( inter!retation o5 Se7tion 3, Ru-e "2 o5 t(e "11; Ru-es o5 Civi- Pro7edure is erroneous
A)end)ents o5 !-eadin.s are a--o6ed under Ru-e "2 o5 t(e "11; Ru-es o5 Civi- Pro7edure in
order t(at t(e a7tua- )erits o5 a 7ase )a: /e deter)ined in t(e )ost e4!editious and
ine4!ensive )anner 6it(out re.ard to te7(ni7a-ities, and t(at a-- ot(er )atters in7-uded in t(e
7ase )a: /e deter)ined in a sin.-e !ro7eedin., t(ere/: avoidin. )u-ti!-i7it: o5 suits 8"09
Se7tion 3 t(ereo5 a!!-ies to situations 6(erein eviden7e not 6it(in t(e issues raised in t(e
!-eadin.s is !resented /: t(e !arties durin. t(e tria-, and to 7on5or) to su7( eviden7e t(e
!-eadin.s are su/se<uent-: a)ended on )otion o5 a !art: T(us, a 7o)!-aint 6(i7( 5ai-s to
state a 7ause o5 a7tion )a: /e 7ured /: eviden7e !resented durin. t(e tria-
Eo6ever, t(e 7urin. e55e7t under Se7tion 3 is a!!-i7a/-e only if a cause of action in fact e)ists
at the time the complaint is filed& but the complaint is defective for failure to allege the
essential facts For e4a)!-e, i5 a 7o)!-aint 5ai-ed to a--e.e t(e 5u-5i--)ent o5 a 7ondition
!re7edent u!on 6(i7( t(e 7ause o5 a7tion de!ends, eviden7e s(o6in. t(at su7( 7ondition
(ad a-read: /een 5u-5i--ed 6(en t(e 7o)!-aint 6as 5i-ed )a: /e !resented durin. t(e tria-, and
t(e 7o)!-aint )a: a77ordin.-: /e a)ended t(erea5ter8"%9 T(us, in *oces v. Jalandoni,8"#9
t(is Court u!(e-d t(e tria- 7ourt in taBin. 7o.niHan7e o5 an ot(er6ise de5e7tive 7o)!-aint
6(i7( 6as -ater 7ured /: t(e testi)on: o5 t(e !-ainti55 durin. t(e tria- In t(at 7ase, t(ere 6as
in 5a7t a 7ause o5 a7tion and t(e on-: !ro/-e) 6as t(e insu55i7ien7: o5 t(e a--e.ations in t(e
7o)!-aint T(is ru-in. 6as reiterated in "ascua v. Court of Appeals8"39
It t(us 5o--o6s t(at a 7o)!-aint 6(ose 7ause o5 a7tion (as not :et a77rued 7annot /e 7ured or
re)edied /: an a)ended or su!!-e)enta- !-eadin. a--e.in. t(e e4isten7e or a77rua- o5 a
7ause o5 a7tion 6(i-e t(e 7ase is !endin.8"&9 Su7( an a7tion is !re)ature-: /rou.(t and is,
t(ere5ore, a .round-ess suit, 6(i7( s(ou-d /e dis)issed /: t(e 7ourt u!on !ro!er )otion
seasona/-: 5i-ed /: t(e de5endant T(e under-:in. reason 5or t(is ru-e is t(at a !erson s(ou-d
not /e su))oned /e5ore t(e !u/-i7 tri/una-s to ans6er 5or 7o)!-aints 6(i7( are i))ature
As t(is Court e-o<uent-: said in +urigao ,ine -)ploration Co.& .nc. v. /arris'8";9
It is a ru-e o5 -a6 to 6(i7( t(ere is, !er(a!s, no e47e!tion, eit(er at -a6 or in e<uit:, t(at to
re7over at a-- there must be some +ause of a+tion at the +ommen+ement of the suit As
o/served /: 7ounse- 5or a!!e--ees, t(ere are reasons o5 !u/-i7 !o-i7: 6(: t(ere s(ou-d /e no
need-ess (aste in /rin.in. u! -iti.ation, and 6(: !eo!-e 6(o are in no de5au-t and a.ainst
6(o) t(ere is :et no 7ause o5 a7tion s(ou-d not /e su))oned /e5ore t(e !u/-i7 tri/una-s to
ans6er 7o)!-aints 6(i7( are .round-ess Ge sa: .round-ess /e7ause i5 t(e a7tion is
i))ature, it s(ou-d not /e entertained, and an a7tion !re)ature-: /rou.(t is a .round-ess
suit
It is true t(at an a)ended 7o)!-aint and t(e ans6er t(ereto taBe t(e !-a7e o5 t(e ori.ina-s
6(i7( are t(ere/: re.arded as a/andoned =Re:nes vs Co)!aSTa Genera- de Ta/a7os
8"1"09, 0" P(i- #"&J Ru:)an and Farris vs *ire7tor o5 Lands 8"1"&9, %# P(i-, #0$> and t(at
Ct(e 7o)!-aint and ans6er (avin. /een su!erseded /: t(e a)ended 7o)!-aint and ans6er
t(ereto, and t(e ans6er to t(e ori.ina- 7o)!-aint not (avin. /een !resented in eviden7e as an
e4(i/it, t(e tria- 7ourt 6as not aut(oriHed to taBe it into a77ountD =Bastida vs MenHi U Co
8"1%%9, 3$ P(i-, "$$> But in none o5 t(ese 7ases or in an: ot(er 7ase (ave 6e (e-d t(at i5 a
ri.(t o5 a7tion did not e4ist 6(en t(e ori.ina- 7o)!-aint 6as 5i-ed, one 7ou-d /e 7reated /:
5i-in. an a)ended 7o)!-aint In so)e Aurisdi7tions in t(e United States 6(at 6as ter)ed an
Ci)!er5e7t 7ause o5 a7tionD 7ou-d /e !er5e7ted /: suita/-e a)end)ent =Bro6n vs Ga-ena
Minin. U S)e-tin. Co, %0 Nan, 30$J Eoo!er vs Cit: o5 At-anta, 0& Ga A!!, 00"> and t(is is
virtua--: !er)itted in BanHon and Rosauro vs Se--ner =8"1%%9, 3$ P(i-, #3%>J Asiati7
Potro-eu) 8si79 Co vs +e-oso =8"1%39, &0 P(i-, &$%>J and re7ent-: in Ra)os vs Gi//on =%$
O55 GaH, 0#"> 9hat, ho<ever, <hi+h is no +ause of a+tion <hatsoever +annot by
amendment or supplemental pleading /e 7onverted into a 7ause o5 a7tion' Nihil de re
accrescit ei 0ui nihil in re 0uando 1us accresceret habet
Ge are t(ere5ore o5 t(e o!inion, and so (o-d, t(at unless the plaintiff has a valid and
subsisting +ause of a+tion at the time his a+tion is +ommen+ed, the defe+t +annot be
+ured or remedied by the a+@uisition or a++rual of one <hile the a+tion is pending, and
a supplemental +omplaint or an amendment setting up su+h after%a++rued +ause of
a+tion is not permissible =E)!(asis ours>
Een7e, 7ontrar: to t(e (o-din. o5 t(e tria- 7ourt and t(e Court o5 A!!ea-s, t(e de5e7t o5 -a7B o5
7ause o5 a7tion at t(e 7o))en7e)ent o5 t(is suit 7annot /e 7ured /: t(e a77rua- o5 a 7ause
o5 a7tion durin. t(e !enden7: o5 t(is 7ase arisin. 5ro) t(e a--e.ed )aturit: o5 t6o o5 t(e
!ro)issor: notes on ; Au.ust "111 and "# Mar7( 0222
Anent t(e issue o5 novation, t(is Court o/serves t(at t(e !etitioner 7or!oration ar.ues t(e
e4isten7e o5 novation /ased on its o6n version o5 6(at trans!ired durin. t(e rene.otiation o5
t(e t(ree !ro)issor: notes in *e7e)/er "11; B: usin. its o6n version o5 5a7ts, t(e
!etitioner is, in a 6a:, <uestionin. t(e 5indin.s o5 5a7ts o5 t(e tria- 7ourt and t(e Court o5
A!!ea-s
As a ru-e, t(e 5indin.s o5 5a7t o5 t(e tria- 7ourt and t(e Court o5 A!!ea-s are 5ina- and
7on7-usive and 7annot /e revie6ed on a!!ea- to t(e Su!re)e Court8"$9 as -on. as t(e: are
/orne out /: t(e re7ord or are /ased on su/stantia- eviden7e8"19 T(e Su!re)e Court is not a
trier o5 5a7ts, its Aurisdi7tion /ein. -i)ited to revie6in. on-: errors o5 -a6 t(at )a: (ave /een
7o))itted /: t(e -o6er 7ourts A)on. t(e e47e!tions is 6(en t(e 5indin. o5 5a7t o5 t(e tria-
7ourt or t(e Court o5 A!!ea-s is not su!!orted /: t(e eviden7e on re7ord or is /ased on a
)isa!!re(ension o5 5a7ts Su7( e47e!tion o/tains in t(e !resent 7ase8029
T(is Court 5inds to /e 7ontrar: to t(e eviden7e on re7ord t(e 5indin. o5 /ot( t(e tria- 7ourt and
t(e Court o5 A!!ea-s t(at t(e rene.otiation in *e7e)/er "11; resu-ted in t(e redu7tion o5 t(e
interest 5ro) "3Q to &Q !er annu) and t(at t(e )ont(-: !a:)ents o5 USP;32 )ade /: t(e
!etitioner 6ere 5or t(e redu7ed interests
It is 6ort(: to note t(at t(e 7as( vou7(er dated ?anuar: "11$80"9 states t(at t(e !a:)ent o5
USP;32 re!resents CIN+ESTMENT PAYMENTD A-- t(e su77eedin. 7as( vou7(ers des7ri/e
t(e !a:)ents 5ro) Fe/ruar: "11$ to Se!te)/er "111 as CCAPITAL REPAYMENTD8009 A--
t(ese 7as( vou7(ers served as re7ei!ts eviden7in. !rivate res!ondent@s a7Bno6-ed.)ent o5
t(e !a:)ents )ade /: t(e !etitioner' t6o o5 6(i7( 6ere si.ned /: t(e !rivate res!ondent
(i)se-5 and a-- t(e ot(ers 6ere si.ned /: (is re!resentatives T(e !rivate res!ondent even
identi5ied and 7on5ir)ed t(e e4isten7e o5 t(ese re7ei!ts durin. t(e (earin. 80%9 Si.ni5i7ant-:,
7o.niHant o5 t(ese re7ei!ts, t(e !rivate res!ondent a!!-ied t(ese !a:)ents to t(e t(ree
7onso-idated !rin7i!a- -oans in t(e su))ar: o5 !a:)ents (e su/)itted to t(e 7ourt80#9
Under Arti7-e "03% o5 t(e Civi- Code, i5 t(e de/t !rodu7es interest, !a:)ent o5 t(e !rin7i!a-
s(a-- not /e dee)ed to (ave /een )ade unti- t(e interest (as /een 7overed In t(is 7ase, t(e
!rivate res!ondent 6ou-d not (ave si.ned t(e re7ei!ts des7ri/in. t(e !a:)ents )ade /: t(e
!etitioner as C7a!ita- re!a:)entD i5 t(e o/-i.ation to !a: t(e interest 6as sti-- su/sistin. T(e
re7ei!ts, as 6e-- as !rivate res!ondent@s su))ar: o5 !a:)ents, -end 7reden7e to !etitioner@s
7-ai) t(at t(e !a:)ents 6ere 5or t(e !rin7i!a- -oans and t(at t(e interests on t(e t(ree
7onso-idated -oans 6ere 6aived /: t(e !rivate res!ondent durin. t(e undis!uted
rene.otiation o5 t(e -oans on a77ount o5 t(e /usiness reverses su55ered /: t(e !etitioner at
t(e ti)e
T(ere 6as t(ere5ore a novation o5 t(e ter)s o5 t(e t(ree !ro)issor: notes in t(at t(e interest
6as 6aived and t(e !rin7i!a- 6as !a:a/-e in )ont(-: insta--)ents o5 USP;32 A-terations o5
t(e ter)s and 7onditions o5 t(e o/-i.ation 6ou-d .enera--: resu-t on-: in )odi5i7ator: novation
un-ess su7( ter)s and 7onditions are 7onsidered to /e t(e essen7e o5 t(e o/-i.ation itse-5 8039
T(e resu-tin. novation in t(is 7ase 6as, t(ere5ore, o5 t(e )odi5i7ator: t:!e, not t(e e4tin7tive
t:!e, sin7e t(e o/-i.ation to !a: a su) o5 )one: re)ains in 5or7e
T(us, sin7e t(e !etitioner did not rene.e on its o/-i.ation to !a: t(e )ont(-: insta--)ents
7on5or)a/-: 6it( t(eir ne6 a.ree)ent and even 7ontinued !a:in. durin. t(e !enden7: o5 t(e
7ase, t(e !rivate res!ondent (ad no 7ause o5 a7tion to 5i-e t(e 7o)!-aint It is on-: u!on
!etitioner@s de5au-t in t(e !a:)ent o5 t(e )ont(-: a)ortiHations t(at a 7ause o5 a7tion 6ou-d
arise and .ive t(e !rivate res!ondent a ri.(t to )aintain an a7tion a.ainst t(e !etitioner
Last-:, t(e !etitioner 7ontends t(at t(e Court o5 A!!ea-s o/stinate-: in7-uded its President
In5ante and +i7e-President Ee.ert: as a!!e--ants even i5 t(e: did not a!!ea- t(e tria- 7ourt@s
de7ision sin7e t(e: 6ere 5ound to /e not !ersona--: -ia/-e 5or t(e o/-i.ation o5 t(e !etitioner
Indeed, t(e Court o5 A!!ea-s erred in re5errin. to t(e) as de5endants-a!!e--antsJ
nevert(e-ess, t(at error is no 7ause 5or a-ar) /e7ause its ru-in. 6as 7-ear t(at t(e !etitioner
7or!oration 6as t(e one so-e-: -ia/-e 5or its o/-i.ation In 5a7t, t(e Court o5 A!!ea-s a55ir)ed
in toto t(e de7ision o5 t(e tria- 7ourt, 6(i7( )eans t(at it a-so u!(e-d t(e -atter@s ru-in. t(at
Ee.ert: and In5ante 6ere not !ersona--: -ia/-e 5or t(e !e7uniar: o/-i.ations o5 t(e !etitioner to
t(e !rivate res!ondent
In su), /ased on our dis<uisition on t(e -a7B o5 7ause o5 a7tion 6(en t(e 7o)!-aint 5or su) o5
)one: and da)a.es 6as 5i-ed /: t(e !rivate res!ondent, t(e !etition in t(e 7ase at /ar is
i)!ressed 6it( )erit
WHEREFORE, t(e !etition is (ere/: GRANTE* T(e *e7ision o5 3 Se!te)/er 022% o5 t(e
Court o5 A!!ea-s in CA-GR C+ No &$"21, 6(i7( a55ir)ed t(e *e7ision o5 3 Ma: 0222 o5 t(e
Re.iona- Tria- Court o5 Ba.uio, Bran7( 31, .rantin. in !art !rivate res!ondent@s 7o)!-aint 5or
su) o5 )one: and da)a.es, and its Reso-ution o5 # *e7e)/er 022%, 6(i7( denied
!etitioner@s )otion 5or re7onsideration are (ere/: RE+ERSE* and SET ASI*E T(e
7o)!-aint do7Beted as Civi- Case No #0$0-R is (ere/: *ISMISSE* 5or -a7B o5 7ause o5
a7tion
No 7osts
SO OR*ERE*
Kuisu)/in., Ynares-Santia.o, Car!io, and AH7una, ??, 7on7ur
#.R. No. *(((, February >., ,)*)
/R$O" $EO6RER, !etitioner
vs
9HE /O1R9 OF 22E$" and 6NA OF 9HE 2HI$I22INE I"$ND", res!ondents
Beng!on& 2arraga& Narciso& Cudala& "escon & Bengson for petitioner.
Leoner& *amire! & Associates for respondent B"..

/OR9E", J.:
T(e 7ru4 o5 t(e !resent !etition 5or revie6 on 7ertiorari is t(e !ro!riet: o5 t(e ad)ission /: t(e
tria- 7ourt o5 a su!!-e)enta- 7o)!-aint 5i-ed /: !etitioner
T(e undis!uted 5a7ts o5 t(e 7ase are as 5o--o6s'
So)eti)e in "1$2, !etitioner Car-os Leo/rera =Leo/rera 5or s(ort> 6as .ranted an P
$22,22222 7redit 5a7i-it: /: !rivate res!ondent BanB o5 t(e P(i-i!!ine Is-ands =BPI 5or s(ort>
7onsistin. o5 t(e 5o--o6in.' =a> P 022,22222 revo-vin. !ro)issor: note -ine at "2Q interest
!aJ =/> P "22,22222 e4!ort advan7e -ine at "0Q interest !aJ and, =7> P 322,22222
Industria- Guarantee Loan Fund =IGLF> -oan at "0Q interest !a T(e 5a7i-it: 6as .ranted as
!art o5 an a)i7a/-e sett-e)ent /et6een BPI and Leo/rera 6(erein t(e -atter a.reed to dro!
(is 7-ai)s 5or da)a.es a.ainst t(e 5or)er 5or its a--e.ed 5ai-ure to de-iver on ti)e t(ree e4!ort
-etters o5 7redit o!ened in Leo/reraIs 5avor 8Re7ord, !! ;1 and 109 T(e 7redit 5a7i-it: .ranted
6as se7ured /: t6o rea- estate )ort.a.es dated 02 Nove)/er "1;& and $ Fe/ruar: "1$2 In
"1$#, t(e 5a7i-it: 6as entire-: 7onverted into a revo-vin. !ro)issor: note -ine at 0&Q interest
!a and set on a 5-oatin. rate /asis t(e :ear a5ter T(e -ine 6as -ast rene6ed on 0" Mar7(
"1$& eviden7ed /: t6o 12-da: !ro)issor: notes nu)/ered 2";- $&V20%%-2 and 2";-$&V
20%#-$ 5or P 322,22222 and P %22,22222 res!e7tive-: 8Ro--o, !! &;-&$9
Aside 5ro) t(e a/ove)entioned 7redit 5a7i-it:, Leo/rera a-so o/tained 5ro) BPI a se!arate
t(ree-:ear ter) -oan in t(e a)ount o5 P 322,22222 eviden7ed /: Pro)issor: Note No
2";$3V200#-2 dated "3 Nove)/er "1$3 8Ro--o, ! &&9 T(is t(ree-:ear ter) -oan 6as se7ured
/: a t(ird rea- estate )ort.a.e dated 0% O7to/er "1$3
U!on )aturit: o5 t(e 12-da: notes 8Ro--o !! &;-&$" BPI and Leo/rera ne.otiated, a-/eit
unsu77ess5u--:, on t(e ter)s o5 t(eir rene6a- No a.ree)ent (avin. /een rea7(ed /: t(e),
BPI de)anded t(e 5u-- !a:)ent o5 t(e -oan Leo/rera 5ai-ed to sett-e (is -oan a77ount t(us BPI
!re!ared to 5ore7-ose t(e rea- estate )ort.a.es se7urin. t(e sa)e Be5ore BPI 7ou-d institute
5ore7-osure !ro7eedin.s (o6ever, Leo/rera 5i-ed on & ?anuar: "1$; a 7o)!-aint 5or da)a.es
6it( a !ra:er 5or t(e issuan7e o5 a 6rit o5 !re-i)inar: inAun7tion seeBin. to enAoin BPI 5ro)
5ore7-osin. t(e )ort.a.es, do7Beted as Civi- Case No "3&## o5 t(e Re.iona- Tria- Court o5
MaBati, Metro Mani-a, Bran7( CRL+
T(e tria- 7ourt issued an order restrainin. BPI 5ro) 5ore7-osin. t(e rea- estate )ort.a.es
se7urin. t(e 12 da: -oans and, a5ter (earin., issued a 6rit o5 !re-i)inar: inAun7tion
Mean6(i-e, on 1 Fe/ruar: "1$;, t(e /anB 6rote Leo/rera 7-ai)in. t(at (e 5ai-ed to !a: t(e
a)ortiHation due on t(e t(ree-:ear ter) -oan, as a resu-t o5 6(i7(, BPI o!ted to a77e-arate t(e
)aturit: o5 t(e -oan and 7a--ed t(e entire -oan due and de)anda/-e Leo/rera -iBe6ise 5ai-ed
to re)it t(e a)ount due and BPI t(us t(reatened to 5ore7-ose t(e rea- estate )ort.a.e
se7urin. t(e -oan
Be5ore BPI 7ou-d 5ore7-ose t(e )ort.a.e, !etitioner 5i-ed 6it( t(e tria- 7ourt on "" Mar7( "1$;
a LMotion to Fi-e Su!!-e)enta- Co)!-aint,L atta7(in. t(ereto t(e su!!-e)enta- 7o)!-aint
6(i7( !ra:ed 5or t(e issuan7e o5 an inAun7tion to restrain BPI 5ro) 5ore7-osin. t(e t(ird
)ort.a.e T(e ne4t da:, "0 Mar7( "1$;, t(e tria- 7ourt .ranted Leo/reraIs )otion to 5i-e t(e
su!!-e)enta- 7o)!-aint and issued a restrainin. order enAoinin. BPI 5ro) !ro7eedin. 6it(
an: 3Legal& court or other action3 arisin. 5ro) t(e !ro)issor: note eviden7in. t(e t(ree-:ear
ter) -oan T(at order 6as served on BPI on "% Mar7( "1$; 8Ro--o, ! 3$9
Contestin. t(e va-idit: o5 t(e "0 Mar7( "1$; order, BPI 5i-ed a )otion to set it aside /ut t(e
)otion 6as denied /: t(e tria- 7ourt on %" Mar7( "1$;
BPI t(en 5i-ed a !etition 5or 7ertiorari and !ro(i/ition 6it( a !ra:er 5or !re-i)inar: inAun7tion
6it( t(e Court o5 A!!ea-s, seeBin. to annu- t(e "0 Mar7( "1$; 7ourt order issued /: t(e tria-
7ourt and asBin. t(at t(e -atter /e !ro(i/ited 5ro) (earin. t(e !etition 5or inAun7tion !ra:ed 5or
in t(e su!!-e)enta- 7o)!-aint
Be5ore t(e Court o5 A!!ea-s 7ou-d a7t on BPIIs !etition (o6ever, t(e tria- 7ourt .ranted t(e
inAun7tion !ra:ed 5or
On 0% ?une "1$;, t(e Court o5 A!!ea-s .ave due 7ourse to BPIIs !etition and enAoined t(e
tria- Aud.e 5ro) en5or7in. (is order dated "0 Mar7( "1$; On 01 ?u-: "1$;, t(e Court o5
A!!ea-s issued a 6rit o5 !re-i)inar: inAun7tion in 5avor o5 BPI
On 0" Se!te)/er "1$;, t(e Court o5 A!!ea-s rendered a de7ision in 5avor o5 BPI, t(e
dis!ositive !ortion o5 6(i7( reads as 5o--o6s'
GEEREFORE, t(e !etition is (ere/: .ranted T(e order o5 t(e res!ondent
?ud.e dated Mar7( "0, "1$; is de7-ared nu-- and void and set aside
Let t(e re7ords o5 t(is 7ase /e re)anded to t(e Court 5or 5urt(er !ro7eedin.s on
t(e ori.ina- 7o)!-aint in Civi- Case No -3&##
Costs a.ainst t(e !rivate res!ondents
SO OR*ERE* 8Ro--o, ! 039
Fro) t(e 5ore.oin. de7ision o5 t(e Court o5 A!!ea-s, Leo/rera 5i-ed t(e instant !etition 5or
revie6 6it( !ra:er 5or t(e issuan7e o5 a 6rit o5 !re-i)inar: inAun7tion
On 0$ O7to/er "1$;, t(e Court issued a te)!orar: restrainin. order enAoinin. BPI L5ro)
5ore7-osin. t(e t(ree =%> !ro!erties o5 t(e !etitioner (erein 8Ro--o, ! #"9 Eo6ever, /: t(is
ti)e, BPI (ad a-read: 5ore7-osed t6o o5 t(e !ro!erties 8Ro--o, ! #39 On 0# Fe/ruar: "1$$ t(e
Court .ave due 7ourse to t(e !etition and t(e !arties su/)itted t(eir res!e7tive )e)oranda
Petitioner 5i-ed t6o )otions asBin. 5or t(e e4tension o5 sus!ension o5 t(e !eriod to redee) t(e
!ro!erties /ut t(e Court in a reso-ution dated 0" O7to/er "1$$ denied said )otions as 6e-- as
!etitionerIs )otion 5or re7onsideration on 0% ?anuar: "1$1 T(e Court )ere-: noted a
su/se<uent )ani5estation and )otion !ra:in. t(at t(e 5ore7-osure /e de7-ared nu-- and void,
as it 6as in e55e7t a se7ond )otion 5or re7onsideration
In assai-in. t(e de7ision o5 t(e Court o5 A!!ea-s, !etitioner assi.ns as errors t(e 5o--o6in.'
I
TEE EONORABLE COURT OF APPEALS ERRE* IN STATING TEAT TEE MOTION TO
A*MIT SUPPLEMENTAL COMPLAINT FILE* BY EEREIN PETITIONER *I* NOT CONTAIN
A NOTICE OF EEARING OR TEAT TEE SAME IS *EFECTI+E
II
TEAT TEE COURT OF APPEALS ERRE* IN CONSI*ERING TEAT TEE SUPPLEMENTAL
COMPLAINT IN+OL+ES A NEG OR *ISTINCT MATTER GEICE CANNOT BE ?OINE*
GITE TEE ORIGINAL COMPLAINT
III
TEAT TEE COURT OF APPEALS ERRE* IN ISSUING TEE IN?UNCTION PRAYE* FOR BY
RESPON*ENTS AN* CONSEKUENTLY, GRA+E AN* IRREPARABLE IN?URY RESULTE*
TO TEE *AMAGE AN* PRE?U*ICE OF EEREIN PETITIONER 8Ro--o, ! &9
T(e )ain issue (ere is 6(et(er or not t(e Court o5 A!!ea-s erred in (o-din. t(at t(e tria- 7ourt
a/used its dis7retion in ad)ittin. t(e su!!-e)enta- 7o)!-aint Se7tion & o5 Ru-e "2 o5 t(e
Ru-es o5 Court .overnin. t(e ad)ission o5 su!!-e)enta- !-eadin.s states'
Se7tion & ,atters sub1ect of supplemental pleadings. - U!on )otion o5 a !art:
t(e 7ourt )a:, u!on reasona/-e noti7e and u!on su7( ter)s as are Aust, !er)it
(i) to serve a su!!-e)enta- !-eadin. settin. 5ort( transa7tions, o77urren7es or
events 6(i7( (a!!ened sin7e t(e date o5 t(e !-eadin. sou.(t to /e
su!!-e)ented I5 t(e 7ourt dee)s it advisa/-e t(at t(e adverse !art: s(ou-d
!-ead t(ereto, it s(a-- so order, s!e7i5:in. t(e ti)e t(ere5or
T(e a/ove ru-e e4!ress-: !rovides t(at t(e Court )a: a--o6 a !art: u!on )otion to serve a
su!!-e)enta- !-eadin. a5ter reasona/-e noti7e (as /een .iven t(e ot(er !art: T(e <uestion
(ere t(en is 6(et(er t(at re<uire)ent o5 a Lreasona/-e noti7eL (as /een 7o)!-ied 6it(
T(e Court o5 A!!ea-s 5ound, undis!uted /: !etitioner, t(at !etitioner 5i-ed t(e LMotion to Fi-e
t(e Su!!-e)enta- Co)!-aintL on "" Mar7( "1$; atta7(in. t(ereto a 7o!: o5 t(e su!!-e)enta-
7o)!-aint A 7o!: o5 t(e )otion 6as sent to BPI /: re.istered )ai- on t(e sa)e da: /ut 6as
re7eived /: t(e -atter on-: on "% Mar7( "1$; 8Re7ord, ! 0;"9 A da: ear-ier (o6ever, "0
Mar7( "1$;, t(e tria- 7ourt (ad a-read: issued an order .rantin. t(e )otion and ad)itted t(e
su!!-e)enta- 7o)!-aint Lin t(e interest o5 sound ad)inistration o5 Austi7eL 8Ro--o, ! &19 T(e
tria- Aud.e -iBe6ise issued a te)!orar: restrainin. order to enAoin BPI 5ro) !ro7eedin. 6it(
LAn: -e.a-, 7ourt or ot(er a7tion a.ainst !-ainti55 =Leo/rera> arisin. 5ro) Pro)issor: Note No
2";-00#-2L 8I/id9
It is di55i7u-t to as7ri/e as Lreasona/-eI t(e a/ove des7ri/ed )anner in 6(i7( BPI 6as
a!!rised o5 t(e !ro7eedin.s re-ative to t(e su!!-e)enta- 7o)!-aint T(e undue (aste 6(i7(
7(ara7teriHed t(e tria- 7ourts ad)ission o5 t(e su!!-e)enta- 7o)!-aint is at on7e a!!arent as
no notice had as yet been received by B". 4hen the trial court issued the 56 ,arch 5789
order .rantin. t(e )otion to 5i-e t(e su!!-e)enta- 7o)!-aint and restrainin. BPI 5ro)
5ore7-osin. t(e )ort.a.e BPI -earned o5 t(e e4isten7e o5 t(e )otion and t(e order .rantin. it
on-: on "% Mar7( "1$; B: t(en it 6as too -ate 5or it to 7ontest t(e )otion
T(e ar/itrariness o5 t(e tria- 7ourtIs ad)ission o5 t(e su!!-e)enta- 7o)!-aint is /rou.(t to t(e
5ore 6(en it is 7onsidered t(at t(e )otion to 5i-e t(e su!!-e)enta- 7o)!-aint 7ontained an
inva-id noti7e o5 (earin. and -a7Bed !roo5 o5 its servi7e as re<uired /: Se7tion #, 3 and & o5
Ru-e "3 o5 t(e Revised Ru-es o5 Court T(is is a!!arent 5ro) a 7ursor: readin. o5 said LNoti7e
o5 Eearin.L to 6it'
NOTICE OF EEARING
T(e C-erB o5 Court
GREETINGS'
P-ease su/)it t(e 5ore.oin. )otion to t(e Eonora/-e Court i))ediate-: u!on
re7ei!t t(ereo5 5or its due 7onsideration and a!!rova-
=S.d> ISI*RO C ,ARRAGA
Co!: 5urnis(ed'
Att: A-5onso B +erHosa
Counse- 5or t(e *e5endant
"3t( F-oor, BPI Fa)i-: BanB Center
$;3% Paseo de Ro4as
MaBati, Metro Mani-a
8Ro--o, ! ;%9
T(e noti7e o5 (earin. is intended to !revent sur!rise and to a55ord t(e adverse !art: a 7(an7e
to /e (eard /e5ore t(e )otion is reso-ved /: t(e tria- 7ourt G(i-e t(e 7ourt (as said t(at a
-itera- o/servan7e o5 t(e noti7e re<uire)ents in Se7tions #, 3 and & o5 Ru-e "3 is not
ne7essar:, a seasona/-e servi7e o5 a 7o!: o5 t(e )otion on adverse !art: or 7ounse- 6it( a
noti7e o5 (earin. indi7atin. t(e time and place of hearing of the motion are )andator:
re<uire)ents t(at 7annot /e dis!ensed 6it( as t(ese are t(e )ini)u) re<uire)ents o5
!ro7edura- due !ro7ess 8I/asan v Re!u/-i7, GR No #$30$, A!ri- 03, "1$2, 1; SCRA "2"J
Esti!ona v Navarro, GR No L- #"$03, ?anuar: %2, "1;&, &1 SCRA 0$3J Mani-a Suret: and
Fide-it: Co, In7, v Bat( Constru7tion and Co, GR No "&&%&, ?une 0#, "1&3, "# SCRA
#%39
It is evident 5ro) t(e noti7e t(at no ti)e and !-a7e o5 (earin. o5 t(e )otion is indi7ated
Neit(er does t(e re7ord revea- t(at t(ere 6as !roo5 o5 servi7e atta7(ed to t(e )otion T(e
)ini)u) re<uire)ents o5 !ro7edura- due !ro7ess not (avin. /een satis5ied /: t(e noti7e, t(e
)otion to 6(i7( it 6as atta7(ed is t(us a )ere s7ra! o5 !a!er not entit-ed to an: 7o.niHan7e
/: t(e tria- 7ourt T(e Court o5 A!!ea-s t(us 7o))itted no reversi/-e error in annu--in. t(e "0
Mar7( "1$; order o5 t(e tria- 7ourt tainted as it 6as 6it( 7-ear .rave a/use o5 dis7retion
As to t(e su!!-e)enta- 7o)!-aint, 6(at -iBe6ise )i-itates a.ainst its ad)ission is t(e 5a7t t(at
t(e )atters invo-ved t(erein are entire-: di55erent 5ro) t(e 7auses o5 a7tion )entioned in t(e
ori.ina- 7o)!-aint
A su!!-e)enta- 7o)!-aint s(ou-d, as t(e na)e i)!-ies, su!!-: on-: de5i7ien7ies in aid o5 an
ori.ina- 7o)!-aint 8Britis( Traders Insuran7e Co)!an: v Co))issioner o5 Interna- Revenue,
GR No L-0232", A!ri- %2,"1&3,"% SCRA ;0$9 It s(ou-d 7ontain on-: 7auses o5 a7tion
re-evant and )ateria- to t(e !-ainti55Is ri.(t and 6(i7( (e-! or aid t(e !-ainti55Is ri.(t or de5ense
8*e -a Ra)a Stea)s(i! Co, In7 v Nationa- *eve-o!)ent Co)!an:, GR No L-"3&31,
Nove)/er %2,"1&0,& SCRA ;;39 T(e su!!-e)enta- 7o)!-aint )ust /e /ased on )atters
arisin. su/se<uent to t(e ori.ina- 7o)!-aint re-ated to t(e 7-ai) or de5ense !resented t(erein,
and 5ounded on t(e sa)e 7ause o5 a7tion It 7annot /e used to tr: a ne6 )atter or a ne6
7ause o5 a7tion 8+ee Rando-!( v Missouri-Nansas-Te4as R Co, *C Mo "1#$, ;$ F Su!!
;0;, Berssen/ru..e v Lu7e M5. Co, *C Mo "1%1,%2 F Su!! "2"9
G(i-e !etitioner 6ou-d !ersuade t(is Court t(at t(e 7auses o5 a7tion are interre-ated, t(e
re7ord revea-s ot(er6ise T(e re7ord s(o6s t(at !etitionerIs )ain 7ause o5 a7tion in t(e
ori.ina- 7o)!-aint 5i-ed in Civi- Case No "3&## 7on7erned BPIIs t(reat to 5ore7-ose t6o rea-
estate )ort.a.es se7urin. t(e t6o 12 da: !ro)issor: notes e4e7uted /: !etitioner in "1$&
Petitioner a--e.es t(at t(is t(reatened 5ore7-osure vio-ated t(e ter)s o5 t(e "1$2 a)i7a/-e
sett-e)ent /et6een BPI and !etitioner
T(e su!!-e)enta- 7o)!-aint on t(e ot(er (and a--e.ed a7ts o5 (arass)ent 7o))itted /: BPI
in unreasona/-: o!tin. to de7-are !etitioner in de5au-t and in de)andin. 5u-- -i<uidation o5 t(e
"1$3 t(ree-:ear ter) -oan T(is t(ree-:ear ter) -oan, as !revious-: )entioned, 6as entire-:
distin7t and se!arate 5ro) t(e t6o !ro)issor: notes It 6as inde!endent o5 t(e "1$2 a)i7a/-e
sett-e)ent /et6een !etitioner and BPI 6(i7( .ave rise to t(e 7redit 5a7i-it: su/Ae7t o5 t(e
ori.ina- 7o)!-aint A-t(ou.( t(ere is Identit: in t(e re)edies asBed 5or in t(e ori.ina- and
su!!-e)enta- 7o)!-aints, ie inAun7tion, !etitionerIs su/se<uent 7ause o5 a7tion .ivin. rise to
t(e 7-ai) 5or da)a.es in t(e su!!-e)enta- 7o)!-aint is unre-ated to t(e a)i7a/-e sett-e)ent
6(i7( /rou.(t a/out t(e .rant o5 t(e 7redit 5a7i-ities, t(e /rea7( o5 6(i7( sett-e)ent is a--e.ed
to /e t(e /asis o5 t(e ori.ina- 7o)!-aint Petitioner (i)se-5 in (is su!!-e)enta- 7o)!-aint
ad)its t(is T(e su!!-e)enta- 7o)!-aint states inter alia:
444 444 444
0 T(at aside 5ro) t(e -oan o5 P $22,22222 6(i7( is !art and !ar7e- o5 t(e
a)i7a/-e sett-e)ent entered into /: de5endant 5or its .ross ne.-i.en7e and /ad
5ait( in 5ai-in. to noti5: t(e !-ainti55 o5 at -east t(ree -etters o5 7redit 6(i7( as a
resu-t e4!ired 6it(out (avin. /een served /: t(e !-ainti55, t(e !-ainti55 o/tained
5ro) t(e de5endant anot(er -oan o5 P 322,22222 7overed /: PN ";-$3V200#-2
6(i7( 6as e4e7uted on or a/out Nove)/er "3, "1$3 !a:a/-e 6it(in a !eriod o5
t(ree :ears 5ro) t(e date o5 e4e7ution 6it( a )ont(-: a)ortiHation o5 P
#",&&&&&
444 444 444
# T(at on or a/out Fe/ruar: "0, "1$;, t(e !-ainti55 re7eived a -etter 5ro)
de5endant advisin. t(e 5or)er t(at /e7ause o5 t(e !-ainti55s a--e.ed 5ai-ure to
)eet t(e a)ortiHation due on Fe/ruar: 1, "1$;, o5 PN 2";-200#-2 5or P
322,22222 de5endant (ad e4er7ised its o!tion to a77e-erate t(e )aturit: o5 t(e
a77ount and de)anded t(e 5u-- -i<uidation o5 t(e /a-an7e o5 t(e a77ount 6(i7(
6as P %%%,%%%%0 !-us interest and !ena-ties on or /e5ore Fe/ruar: 0;, "1$;
444 444 444
& T(at on Nove)/er "0, "1$&, *ar-ene S(e--s )ade a re)ittan7e to t(e
de5endant in t(e a)ount o5 P $,%321# 6it( t(e !-ainti55 as /ene5i7iar: 6(i7( said
a)ount i5 7redited to t(e !-ainti55Is /anB a77ount 6it( t(e de5endant 6ou-d (ave
)eant an additiona- P "&2,22222, )ore or -ess in said !-ainti55Is a77ount 6it(
t(e de5endant /anB and 6ou-d (ave /een )ore t(at su55i7ient to !a: o55 t(e P
3#,22222 a)ortiHation due on Fe/ruar: 1, "1$;J
; T(at t(e de5endant, (o6ever, re5used to a77e!t t(e re)ittan7e on t(e 5-i)s:
e47use t(at t(e na)e o5 t(e /ene5i7iar: in t(e re)ittan7e 6as not Car5e- S(e--
E4!ort /ut Car Sa-es S(e-- E4!ort and )ade an e)!t: )otion o5 tr:in. to veri5:
6(o 6as t(e su!!osed /ene5i7iar: 6(en t(e de5endant 7ou-d ver: 6e-- (ave
Bno6n and 5ound out t(at t(e /ene5i7iar: 6as indeed Car5e- S(e-- E4!ort sin7e
!-ainti55 /ad e4!ort /usiness transa7tion 6it( de5endant 5or ten or so :ears and
!-ainti55 (ad /een asBin. t(e de5endant /anB o5 said re)ittan7e o5 *ar-ene
S(e--s )an: ti)esJ
$ T(at (ad t(e de5endant a77e!ted said a)ount o5 P $,%321# !-ainti55s a77ount
6ou-d (ave in7reased /: P "12,22222 as o5 Nove)/er "%, "1$& 6(i7( 6ou-d
(ave /een )ore t(at enou.( to 7over t(e 3#,22222 due on Fe/ruar: 1, "1$;J
1 T(at t(e de5endant t(ru )a-i7ious a7ts and /ad 5ait( re5used to a77e!t t(e P
$,%321# 5or t(e reason adverted to a/ove
444 444 444
8Ro--o, !! ;#-;&9
As t(e a--e.ations revea-, t(e P 322,22222 t(ree-:ear ter) -oan is a transa7tion inde!endent
o5 t(e P $22,22222 7redit 5a7i-it: and BPIIs <uestioned a7t o5 t(reatenin. to 5ore7-ose t(e
!ro!erties se7urin. said -oan 6as t(e resu-t o5 an a--e.ed de5au-t /: !etitioner in t(e !a:)ent
o5 t(e a)ortiHation due 5or 1 Fe/ruar: "1$; and not /e7ause o5 an: 7ir7u)stan7e re-ated to
t(e "1$2 a)i7a/-e sett-e)ent
T(e t6o 7auses o5 a7tion /ein. entire-: di55erent, t(e -atter one 7ou-d not /e su77ess5u--:
!-eaded /: su!!-e)enta- 7o)!-aint
GEEREFORE, in vie6 o5 t(e 5ore.oin., t(e !etition is (ere/: *ENIE* T(e te)!orar:
restrainin. order issued on 0$ O7to/er "1$; is (ere/: LIFTE*
SO OR*ERE*
'utierre!& Jr.& and Bidin& JJ.& concur.
#ernan C.J.& too( no part.
8GR No "2;$0# ?u-: 3, "11&9
SUPERCLEAN SER+ICES CORPORATION, petitioner& vs COURT OF APPEALS and
EOME *E+ELOPMENT MUTUAL FUN*, respondents
* E C I S I O N
MEN*O,A, J'
T(e <uestion in t(is 7ase is t(e !ro!riet: o5 5i-in. a Su!!-e)enta- Co)!-aint in order to seeB a
di55erent re-ie5 in vie6 o5 deve-o!)ents renderin. t(e ori.ina- re-ie5 i)!ossi/-e o5 attain)ent
T(e 5a7ts are as 5o--o6s'
On Nove)/er $, "1$1, !etitioner Su!er7-ean Servi7es 5i-ed 6it( t(e Re.iona- Tria- Court o5
Mani-a a 7o)!-aint 5or ,andamusVCertiorari Git( Pre-i)inar: InAun7tion AndVOr Restrainin.
Order a.ainst !rivate res!ondent Eo)e *eve-o!)ent and Mutua- Fund Petitioner a--e.ed
t(at at t(e !u/-i7 /iddin. 5or Aanitoria- servi7es 5or t(e :ear "112 it 6as t(e C-o6est or /est
/idder,D /ut !rivate res!ondent re5used 6it(out Aust 7ause to a6ard t(e 7ontra7t to it and
instead 7aused t(e !u/-i7ation on O7to/er 0%, "1$1 o5 a Noti7e o5 Re/iddin. to /e (e-d on
Nove)/er 1, "1$1
In its ans6er !rivate res!ondent de5ended its a7tion on t(e .round t(at not a sin.-e /id
su/)itted 7o)!-ied 6it( t(e ter)s and 7onditions a.reed u!on in t(e !re-/iddin. 7on5eren7e
(e-d on Se!te)/er &, "1$1
T(e tria- 7ourt t(erea5ter set !etitioner@s a!!-i7ation 5or !re-i)inar: inAun7tion 5or (earin. and
in t(e )eanti)e ordered !rivate res!ondent to desist 5ro) 7ondu7tin. a re/iddin. At t(e
sa)e ti)e, t(e 7ourt .ranted -eave to !rivate res!ondent on ?anuar: #, "112 to (ire Aanitoria-
servi7es on a )ont(-to-)ont( /asis to insure t(e )aintenan7e o5 its o55i7es
On ?u-: 0#, "11", !etitioner )oved 5or t(e ad)ission o5 a CSu!!-e)enta- Co)!-aintD8"9
Petitioner a--e.ed t(at /e7ause t(e 7ontra7t o5 servi7es 6as 5or t(e 5urnis(in. o5 Aanitoria-
servi7e 5or t(e !revious :ear "112, t(e de-a: in t(e de7ision o5 t(e 7ase (ad rendered t(e
7ase )oot and a7ade)i7 C6it(out 8!etitioner9 o/tainin. 7o)!-ete re-ie5 to redress t(e 6ron.
7o))itted a.ainst it /: 8!rivate res!ondent9, 6(i7( re-ie5 7onsists in unrea-iHed !ro5its,
e4e)!-ar: da)a.es and attorne:@s 5eesD A77ordin.-:, instead o5 !ursuin. its !ra:er 5or a 6rit
o5 mandamus, !etitioner sou.(t t(e !a:)ent o5 da)a.es to it
On Au.ust 0%, "11", t(e tria- 7ourt denied !etitioner@s )otion, 5indin. Cno )erit in and no
/asis su!!ortin. itD and set t(e 7ontinuation o5 t(e tria- on Se!te)/er "1, "11"
Petitioner 5i-ed a )otion 5or re7onsideration, /ut its )otion 6as -iBe6ise denied In its order
dated Nove)/er 03, "11", t(e tria- 7ourt said t(at ad)ission o5 t(e CSu!!-e)enta- Co)!-aintD
6ou-d Cnot on-: radi7a--: /ut su/stantia--: 87(an.e9 t(e issuesD /: C)ateria--: var8:in.9 t(e
.rounds o5 re-ie5, and 6ou-d o!erate unAust-: to t(e !reAudi7e o5 t(e ri.(ts o5 8!rivate
res!ondent9D
Petitioner 5i-ed a !etition 5or certiorari in t(e Court o5 A!!ea-s 6(i7(, on Au.ust 3, "110,
rendered a de7ision, 5indin. no .rave a/use o5 dis7retion to (ave /een 7o))itted /: t(e tria-
7ourt in not ad)ittin. !etitioner@s CSu!!-e)enta- Co)!-aintD and den:in. t(e )otion 5or
re7onsideration o5 its order Its ru-in. 6as /ased on t(e 5a7t t(at t(e re-ie5 sou.(t in t(e
CSu!!-e)enta- Co)!-aintD 6as di55erent 5ro) t(at 7ontained in t(e ori.ina- 7o)!-aint 6(i7(
sou.(t to 7o)!e- !rivate res!ondent to re7o.niHe !etitioner as t(e -o6est <ua-i5:in. /idder
In addition, t(e a!!e--ate 7ourt (e-d t(at t(e ori.ina- 7o)!-aint (ad /een rendered )oot and
a7ade)i7 /: su!ervenin. events and t(at a su!!-e)enta- 7o)!-aint 6as ina!!ro!riate sin7e
Csu!!-e)enta- !-eadin.s are )eant to su!!-: t(e de5i7ien7: in aid o5 t(e ori.ina- !-eadin., not
to entire-: su/stitute t(e -atterD
Petitioner )oved 5or a re7onsideration, /ut its )otion 6as denied in a reso-ution o5 t(e Court
o5 A!!ea-s dated O7to/er %2, "110 Een7e, t(is !etition 5or revie6 on certiorari
#irst. T(e CSu!!-e)enta- Co)!-aintD a!!ears to (ave /een 5i-ed under Ru-e "2 o5 t(e Ru-es
o5 Court 6(i7( !rovides'
W& ,atters +ub1ect of +upplemental "leadings M U!on )otion o5 a !art: t(e 7ourt )a:,
u!on reasona/-e noti7e and u!on su7( ter)s as are Aust, !er)it (i) to serve a su!!-e)enta-
!-eadin. settin. 5ort( transa7tions, o77urren7e or events 6(i7( (ave (a!!ened sin7e t(e date
o5 t(e !-eadin. sou.(t to /e su!!-e)ented I5 t(e 7ourt dee)s it advisa/-e t(at t(e adverse
!art: s(ou-d !-ead t(ereto, it s(a-- so order, s!e7i5:in. t(e ti)e t(ere5or
T(e transa7tion, o77urren7e or event (a!!enin. sin7e t(e 5i-in. o5 t(e !-eadin., 6(i7( is
sou.(t to /e su!!-e)ented, )ust /e !-eaded in aid o5 a !art:@s ri.(t or de5ense as t(e 7ase
)a: /e809 But in t(e 7ase at /ar, t(e su!ervenin. event is not invoBed 5or t(at !ur!ose /ut to
Austi5: t(e ne6 re-ie5 sou.(t
To /e.in 6it(, 6(at 6as a--e.ed as a su!ervenin. event 7ausin. da)a.e to !etitioner 6as t(e
5a7t t(at t(e :ear 5or 6(i7( t(e 7ontra7t s(ou-d (ave /een )ade (ad !assed 6it(out t(e
reso-ution o5 t(e 7ase On-: in7identa--: 6as it 7-ai)ed t(at /e7ause o5 t(e a6ard o5 a
7ontra7t 5or Aanitoria- servi7es, on a )ont(-to-)ont( /asis to a t(ird !art:, !etitioner 5ai-ed to
rea-iHe !ro5its In its CSu!!-e)enta- Co)!-aintD !etitioner a--e.ed'
" Su!ervenin. events not attri/uta/-e to an:/od: 6(i7( 7onsist in t(e de-a: in t(e ear-:
dis!osition o5 t(e 7ase 6it(in t(e one ="> :ear !eriod -i5e s!an o5 t(e 7ontra7t 5or Aanitoria-
servi7es, (ave rendered t(e 7ase moot and academic, 6it(out !-ainti55 o/tainin. 7o)!-ete
re-ie5 to redress t(e 6ron. 7o))itted a.ainst it /: de5endant, 6(i7( is t(e unAusti5ied andVor
un-a65u- re5usa- o5 de5endant to re7o.niHe !-ainti55 as t(e -o6est <ua-i5:in. /idder 5or Aanitoria-
servi7es 5or t(e :ear 577;J
0 B: reason o5 t(e unAusti5ied re5usa- o5 de5endant to re7o.niHe t(e resu-t o5 t(e !u/-i7
/iddin. (e-d in Se!te)/er "1$1 and to a6ard to !-ainti55 t(e 7ontra7t 5or Aanitoria- servi7es as
t(e -o6est <ua-i5:in. /idder 5avora/-e and advanta.eous to t(e de5endant 5or t(e :ear "112,
and /: (irin. anot(er entit: to !er5or) Aanitoria- servi7es durin. t(e !enden7: o5 t(e suit,
!-ainti55 su55ered unrea-iHed !ro5its in t(e su) o5 P"3$,"";0$J
T(e su!ervenin. event 6as t(ere5ore 7ited not to rein5or7e or aid t(e ori.ina- de)and, 6(i7(
6as 5or t(e e4e7ution o5 a 7ontra7t in !etitioner@s 5avor, /ut to sa: t(at, !re7ise-: /e7ause o5 it,
!etitioner@s de)and 7ou-d no -on.er /e en5or7ed, t(us Austi5:in. !etitioner in 7(an.in. t(e
re-ie5 sou.(t to one 5or re7over: o5 da)a.es T(is /ein. t(e 7ase, !etitioner@s re)ed: 6as
not to su!!-e)ent, /ut rat(er to a)end its 7o)!-aint
Indeed t(e ne6 re-ie5 sou.(t =!a:)ent o5 da)a.es in -ieu o5 an a6ard o5 t(e 7ontra7t 5or
Aanitoria- servi7es> is a7tua--: an a-ternative re)ed: to 6(i7( !etitioner 6as entit-ed even
/e5ore at t(e ti)e o5 t(e 5i-in. o5 its ori.ina- 7o)!-aint I5 !etitioner 6as entit-ed to t(e a6ard
o5 t(e 7ontra7t, as it 7-ai)ed it 6as, it 7ou-d (ave asBed eit(er 5or an a6ard o5 t(e 7ontra7t 5or
Aanitoria- servi7es or 5or da)a.es T(e 5a7t t(at it o!ted 5or t(e 5irst does not !re7-ude it 5ro)
su/se<uent-: 7-ai)in. da)a.es /e7ause t(rou.( no 5au-t o5 its o6n, t(e :ear !assed 6it(out
an a6ard in its 5avor, 6it( t(e resu-t t(at it 7ou-d no -on.er de)and t(e e4e7ution o5 a 7ontra7t
in its 5avor a5ter t(at :ear
Be t(at as it )a:, t(e so-7a--ed Su!!-e)enta- Co)!-aint 5i-ed /: !etitioner s(ou-d si)!-: /e
treated as e)/od:in. a)end)ents to t(e ori.ina- 7o)!-aint or !etitioner )a: /e re<uired to
5i-e an a)ended 7o)!-aint
+econd But, it is 7ontended, su7( an a)end)ent o5 t(e 7o)!-aint 6ou-d 7(an.e t(e t(eor:
o5 t(e 7ase T(ree reasons 6ere 7ited /: t(e Court o5 A!!ea-s 6(: it t(ou.(t t(e tria- 7ourt
7orre7t-: re5used to ad)it t(e so-7a--ed Su!!-e)enta- Co)!-aint o5 !etitioner' ="> 7(an.e in
t(e re-ie5s !ra:ed 5orJ =0> 7(an.e in t(e issues o5 t(e 7aseJ and =%> !reAudi7e to t(e ri.(ts o5
!rivate res!ondent
T(e 7ontention (as no )erit An a)end)ent to 7(an.e t(e re-ie5 sou.(t does not 7(an.e t(e
t(eor: o5 a 7ase G(at is !ro(i/ited is a 7(an.e in t(e 7ause o5 a7tion T(us in Arches v.
<illarru!,8%9 it 6as (e-d'
T(e -o6er 7ourt denied t(e ad)ission o5 t(e a)ended 7o)!-aint on t(e .round t(at t(e
!-ainti55 t(erein (as 7(an.ed t(e a7tion a--e.ed in t(e ori.ina- 7o)!-aint, /ut u!on 7o)!arin.
t(e t6o 7o)!-aints, 6e 5ind t(at, essentia--:, t(ere 6as no 7(an.e o5 a7tion 5or, in /ot( t(e
ori.ina- and t(e a)ended 7o)!-aints, t(e a7tion 6as 5or t(e 7o--e7tion o5 t(e va-ue o5 t(e
sa)e !ro)issor: notes and t(e on-: di55eren7e /et6een t(e ori.ina- and t(e a)ended
7o)!-aints is 6it( re.ard to t(e 7onsideration o5 said !ro)issor: notes, 5or 6(i-e in t(e
ori.ina- 7o)!-aint it 6as a--e.ed t(at t(ese 6ere e4e7uted /: de5endant +i--arruH 5or )one:
o/tained 5ro) !-ainti55 Ar7(es and 6it( 6(i7( t(e 5or)er !aid 5or -a/or and )ateria-s 5or t(e
7onstru7tion and 7o)!-etion o5 t(e Ivisan Brid.e, in t(e a)ended 7o)!-aint it 6as a--e.ed
t(at said !ro)issor: notes 6ere e4e7uted 5or )ateria-s su!!-ied to Gi--ia) +i--arruH and
a7tua--: used in t(e 7onstru7tion o5 t(e Ivisan Brid.e G(i-e t(e ru-e a--o6in. a)end)ents to
a !-eadin. is su/Ae7t to t(e .enera- -i)itation t(at t(e 7ause o5 a7tion s(ou-d not /e
su/stantia--: 7(an.ed or t(at t(e t(eor: o5 t(e 7ase s(ou-d not /e a-tered, in t(e 5urt(eran7e
o5 Austi7e, a)end)ents to a !-eadin. s(ou-d /e 5avored and t(e ru-es t(ereon s(ou-d /e
-i/era--: 7onstrued In t(e !resent 7ase, 6e 5ind Austi5i7ation 5or a--o6in. t(e ad)ission o5 t(e
a)ended 7o)!-aint in order t(at t(e rea- <uestion /et6een t(e !arties )a: /e !ro!er-: and
Aust-: t(res(ed out, in a sin.-e !ro7eedin., and t(us avoid )u-ti!-i7it: o5 a7tions
In <da. de <illaruel v. ,anila ,otor Co.& .nc.,8#9 !-ainti55s, as -essors o5 a !ro!ert:, 5i-ed an
a7tion 5or t(e res7ission o5 t(e 7ontra7t o5 -ease 5or a--e.ed re5usa- o5 de5endants to !a:
renta-s G(i-e t(e 7ase 6as !endin., t(e /ui-din.s -eased 6ere destro:ed /: 5ire P-ainti55s
5i-ed a su!!-e)enta- 7o)!-aint 5or t(e re7over: o5 t(e va-ue o5 t(e /urned /ui-din.s In
(o-din. t(e su!!-e)enta- 7o)!-aint !ro!er, t(is Court (e-d'
T(is a7tion 6as in7e!tiona--: instituted 5or t(e res7ission o5 t(e 7ontra7t o5 -ease and 5or t(e
re7over: o5 un!aid renta-s /e5ore and a5ter -i/eration G(en t(e -eased /ui-din.s 6ere
destro:ed, t(e !-ainti55s--essors de)anded 5ro) t(e de5endants--essees, instead, t(e va-ue o5
t(e /urned !re)ises, /asin. t(eir ri.(t to do so on de5endants@ a--e.ed de5au-t in t(e !a:)ent
o5 !ost--i/eration renta-s =6(i7( 6as a-so t(eir /asis in 5or)er-: seeBin. 5or res7ission> T(is
7annot /e 7onsidered as a-read: a-terin. t(e t(eor: o5 t(e 7ase 6(i7( is )ere-: a 7(an.e in
t(e re-ie5 !ra:ed 5or, /rou.(t a/out /: 7ir7u)stan7es o77urrin. durin. t(e !enden7: o5 t(e
a7tion, and is not i)!ro!er =Sout(ern Pa7i5i7 Co vs Con6a:, ""3 F 0d ;#&J Su/ur/an
I)!rove)ent Co)!an: vs S7ott Lu)/er Co, $; ALR 333, 31 F 0d ;""> T(e 5i-in. o5 t(e
su!!-e)enta- 7o)!-aint 7an 6e-- /e Austi5ied a-so under Se7tion 0, Ru-e "; o5 t(e Ru-es o5
Court =on a)end)ents> Cto t(e end t(at t(e rea- )atter in dis!ute and a-- )atters in t(e a7tion
in dis!ute /et6een t(e !arties )a:, as 5ar as !ossi/-e /e 7o)!-ete-: deter)ined in a sin.-e
!ro7eedin.D It is to /e noted 5urt(er)ore, t(at t(e ad)ission or reAe7tion o5 t(is Bind o5
!-eadin.s is 6it(in t(e sound dis7retion o5 t(e 7ourt t(at 6i-- not /e distur/ed on a!!ea- in t(e
a/sen7e o5 a/use t(ereo5 =see Se7 3, Ru-e ";, Ru-es o5 Court>, es!e7ia--: so, as in t(is 7ase,
6(ere no su/stantia- !ro7edura- !reAudi7e is 7aused to t(e adverse !art:839
In t(is 7ase, t(e ori.ina- 7o)!-aint 5or ,andamusVCertiorari Git( Pre-i)inar: InAun7tion
AndVOr Restrainin. Order a--e.ed, as 7ause o5 a7tion, !rivate res!ondent@s unAusti5ia/-e
re5usa- to a6ard t(e 7ontra7t to !etitioner des!ite t(e 5a7t t(at t(e -atter 6as t(e C-o6est and
/est <ua-i5:in. /idderD On t(e /asis o5 t(is a--e.ation, it 6as !ra:ed t(at'
" U!on 5i-in. 8o59 t(is Co)!-aint, a restrainin. order /e issued to enAoin 8!rivate
res!ondent9 5ro) i)!-e)entin. 8or9 !ro7eedin. 6it( its Noti7e o5 Re/iddin. 6(i7( is
s7(edu-ed on Nove)/er 1, "1$1 at "2'22 AMJ
0 A5ter tria- on t(e )erits, Aud.)ent /e rendered M
a orderin. 8!rivate res!ondent9 to re7o.niHe 8!etitioner9 as t(e -o6est <ua-i5:in.
res!onsive /idder at t(e !u/-i7 /iddin. (e-d on Se!te)/er 00, "1$1 and t(ere5ore
its ri.(t to t(e a6ard o5 t(e 7ontra7t 5or Aanitoria- servi7esJ
/ de7-arin. t(at 8!rivate res!ondent9 in !u/-is(in. its CNoti7e o5 Re/iddin.D a7ted 6it(
.rave a/use o5 dis7retion a)ountin. to e47ess andVor -a7B o5 Aurisdi7tionJ
7 de7-arin. t(e restrainin. order or te)!orar: 6rit o5 inAun7tion to /e !er)anentJ and
d 5or 7osts o5 suit
T(ese sa)e a--e.ations 7onstitute !etitioner@s 7ause o5 a7tion 5or da)a.es, to 6it'
" t(e su) o5 P"3$,"";0$ as unrea-iHed !ro5itsJ
0 t(e su) o5 P32,22222 as e4e)!-ar: da)a.esJ
% t(e su) e<uiva-ent to t6ent:-5ive =03Q> !er7ent o5 t(e tota- a)ount due and de)anda/-e,
!-us P",22222 5or ever: a!!earan7e o5 7ounse- in 7ourtJ
# t(e 7osts o5 suit
As a-read: stated, t(e 7(an.e in t(e re-ie5 sou.(t 6as ne7essitated /: a su!ervenin. event
6(i7( rendered t(e 5irst re-ie5 sou.(t i)!ossi/-e o5 attain)ent
Be7ause t(e 7ause o5 a7tion on 6(i7( t(e 7o)!-aint 5or )anda)us and inAun7tion and t(e so-
7a--ed Su!!-e)enta- Co)!-aint are /ased is one and t(e sa)e, t(e issue raised is t(e sa)e,
na)e-:, 6(et(er !rivate res!ondent 6as Austi5ied in re5usin. to a6ard t(e 7ontra7t 5or Aanitoria-
servi7es to !etitioner
Nor 6ou-d ad)ission o5 t(e a)ended 7o)!-aint !reAudi7e t(e ri.(ts o5 !rivate res!ondent as
de5endant in t(e a7tion /e-o6, as t(e Court o5 A!!ea-s (e-d Indeed neit(er t(e tria- 7ourt nor
t(e a!!e--ate 7ourt s(o6ed in 6(at 6a: t(e ri.(ts o5 !rivate res!ondent 6ou-d /e !reAudi7ed
/: t(e a--o6an7e o5 t(e a)end)ent in <uestion T(ere 6i-- /e no un5airness or sur!rise to
!rivate res!ondent, /e7ause a5ter a-- !rivate res!ondent 6i-- (ave a ri.(t to 5i-e an a)ended
ans6er and !resent eviden7e in su!!ort t(ereo58&9
=hird T(e Court o5 A!!ea-s a-so (e-d t(at t(e a7tion 5or mandamus andVor inAun7tion (ad
/e7o)e )oot and a7ade)i7 and 7onse<uent-: t(ere 6as no -on.er an: 7o)!-aint to /e
su!!-e)ented It is true t(at a su!!-e)enta- or an a)ended !-eadin. !resu!!oses t(e
e4isten7e o5 a !-eadin. G(at 6as rendered )oot and a7ade)i7, (o6ever, 6as not
!etitioner@s 7ause o5 a7tion /ut on-: its !ra:er 5or t(e 6rit o5 )anda)us T(ere 6as sti-- an
a-ternative re)ed: -e5t to !etitioner o5 seeBin. da)a.es in -ieu o5 an a6ard o5 t(e 7ontra7t
T(e situation is si)i-ar to an a7tion 5or i--e.a- dis)issa- in -a/or -a6 I5 reinstate)ent is no
-on.er !ossi/-e, /e7ause t(e !osition (as /een a/o-is(ed and t(ere is no 6a: t(e dis)issed
e)!-o:ee 7an /e reinstated to a 7o)!ara/-e !osition, t(e e)!-o:ee@s a7tion is not t(ere/:
rendered )oot and a7ade)i7 Ee 7an instead asB 5or se!aration !a:
Indeed, 6(at is i)!ortant is t(at, as a-read: stated, t(e /asi7 a--e.ations o5 5a7t in t(e ori.ina-
and in t(e a)ended 7o)!-aints are t(e sa)e, na)e-:, t(at !rivate res!ondent, 6it(out
Austi5i7ation, re5used to a6ard t(e 7ontra7t o5 servi7es to !etitioner T(rou.( no 5au-t o5
!etitioner, t(e :ear 5or 6(i7( Aanitoria- servi7es 6ere to /e rendered e4!ired 6it(out t(e
reso-ution o5 !etitioner@s 7ase It 6ou-d /e to e4a-t te7(ni7a-it: over su/stan7e to re<uire t(at
!etitioner 5i-e a ne6 7o)!-aint It 6ou-d /est serve t(e interests o5 Austi7e i5 t(e so-7a--ed
Su!!-e)enta- Co)!-aint is si)!-: 7onsidered as e)/od:in. a)end)ents to t(e ori.ina-
7o)!-aint In 5a7t it a!!ears t(at t(e 7ourt ordered a 7ontinuation o5 t(e tria- on Se!te)/er
"1, "11", des!ite !etitioner@s state)ent in its Su!!-e)enta- Co)!-aint t(at t(e ori.ina- 7ase
(ad /e7o)e )oot and a7ade)i7
WHEREFORE, t(e de7ision o5 t(e Court o5 A!!ea-s is RE+ERSE* and t(e 7ase is
REMAN*E* to t(e tria- 7ourt 6it( instru7tions to ad)it t(e CSu!!-e)enta- Co)!-aintD and to
treat it as an a)end)ent to t(e ori.ina- 7o)!-aint or to re<uire !etitioner to 5i-e an a)ended
7o)!-aint, )er.in. t(e re-evant a--e.ations o5 its ori.ina- 7o)!-aint and CSu!!-e)enta-
Co)!-aint,D and t(erea5ter to a--o6 !rivate res!ondent to 5i-e an ans6er
SO OR*ERE*
Re.a-ado, =C(air)an>, Ro)ero, and Puno, ??, 7on7ur
Torres, ?r, ?, tooB no !art
4i
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