THIRD DIVISION[G.R. No. 104019. January 25, 1993.]VICTRONICS
COMPUTERS, INC., petitioner, vs. REGIONAL TRIAL COURT, BRANCH 63,
MAKATI, presided by JUDGE JULIO R. LOGARTA, PANORAMA ENTERPRISES,
INC., PASIG TOURIST DEVELOPMENT CORP., GALACTIC SPACE DEVELOPMENT
CORP., MALATE TOURIST DEVELOPMENT CORP., CALOOCAN TOURIST
DEVELOPMENT CORP., BARRIENTOS & CO., INC., KARL C. VELHAGEN and
ARCHIMEDES R. KING, who operate business under the names VICTORIA
COURT, GMT CONSOLIDATED COMPANY and VICTORIA GROUP OF COMPANIES,
respondents.Paras & Reynes Law Office for petitioner.Ernest S.
Ang for respondents.SYLLABUS1.REMEDIAL LAW; CIVIL PROCEDURE; MOTION
TO DISMISS; LITIS PENDENTIA AS A GROUND; REQUISITES. It is a rule
that for litis pendential to be invoked as a ground for the
abatement or dismissal of an action, the concurrence of the
following requisites is necessary: (a) identity of parties, or at
least such as representing the same interest in both actions; (b)
identity of rights asserted and relief prayed for, the relief being
founded on the same facts; and (c) the identity in the two (2)
cases should be such that the judgment that may be rendered in the
pending case would, regardless of which party is successful, amount
to res judicata in the other.2.ID.; ID.; ID.; ID.; AS A GENERAL
RULE, THE SECOND CASE IS ABATED; LIMITATIONS. Like res judicata as
a doctrine, litis pendentia as a principle is a sanction of public
policy against multiplicity of suits. Differently put, "[T]he
principle upon which a 'plea of another action pending' is
sustained is that the latter action is deemed unnecessary and
vexatious." There is no hard and fast rule that governs the
determination of which of the actions should be abated. A review of
relevant cases decided by this Court discloses that generally, it
is the second case which is abated. Indeed, it seems that the maxim
Qui prior est tempore, potior est jure controls. To be sure, there
are limitations to this rule. At common law, if it appears to the
court that the second action was not brought to harass or vex the
defendant, and is not in fact vexatious, it may refuse to abate the
second action, allow it to stand, and order the first one to be
discounted on proper terms. The court may also permit the plaintiff
to discontinue the first suit and thereby defeat the plea in
abatement where the second suit is necessary in order to protect
and secure the plaintiff's full rights, or where the abatement of
the second suit is necessary in order to protect and secure the
plaintiff's full rights, or where the abatement of the second would
result in possible loss of substantial rights on the part of the
plaintiff.3.ID.; ID.; ID.; ID.; PROVIDES THAT THERE IS A PENDING
ACTION, NOT A PENDING PRIOR ACTION. In our jurisdiction, the law
itself (Section 1(e), Rule 16, Rules of Court) does not
specifically require that the pending action which would hold in
abatement the other must be a pending prior action. Thus, in
Teodoro vs. Mirasol, (99 Phil. 150, 153 [1956]) this Court
observed: "It is to be noted that the Rules do not require as a
ground for dismissal of a complaint that there is a prior pending
action. They provide that there is a pending action, not a pending
prior action. The fact that the unlawful detainer suit was of a
later date is no bar to the dismissal of the present action. We
find, therefore, no error in the ruling of the court a quo that
plaintiff's action should be dismissed on the ground of the
pendency of another more appropriate action between the same
parties and for the same cause."4.ID.; ID.; ID.; ID.; ID.; BONA
FIDES OR GOOD FAITH OF THE PARTIES MUST BE CONSIDERED; CASE AT BAR.
It is interesting to note that in common law, as earlier adverted
to, and pursuant to the Teodoro vs. Mirasol case, the bona fides or
good faith of the parties is a crucial element. In the former, the
second case shall not be abated if not brought to harass or vex; in
the latter, the first case shall be abated if it is merely an
anticipatory action or, more appropriately, an anticipatory defense
against an expected suit a clever move to steal the march from the
aggrieved party. In the case at bar, We do not hesitate to rule
that the second case, Civil Case No. 91-2192, was filed not so much
upon the inspiration of unadulterated good faith to seek redress
for a genuine wrong committed but more to vex or harass in another
forum the plaintiff in the first case, the herein petitioner. What
cannot escape Our attention is the undue, if not indecent, haste in
the preparation of the complaint in Civil Case No. 91-2192 by the
counsel for the defendants in Civil Case No. 91-2069. Civil Case
No. 91-2192 is for the nullification of a contract the purchase
order signed by no less than the authorized officers of the six (6)
respondent corporations. It is, therefore, based upon a written
document as provided Section 7, Rule 8 of the Rules of Court. There
was absolutely no compliance with this requisite as no copy of the
purchase order was set forth in the body of the complaint or
attached to the complaint itself. The non-observance of this simple
yet basic rule cannot be attributed to the ignorance of the lawyers
who, measured by their pleadings in this case, appear to be
experienced and well-versed in the law, but to the frenzied efforts
to file the complaint at the earliest possible time. To make it
appear that the complaint was prepared before service of summons on
the defendants in Civil Case No. 91-2069, it was dated 7 August
1991. It was, however, filed on 9 August 1991 although the office
of the abovementioned lawyers is located at 2129 Pasong Tamo St.,
Makati, Metro Manila, within the same municipality wherein the
court sits. Moreover, all six (6) corporations likewise have their
principal office at the same pasong Tamo address. The private
respondents' claim in their Comment that: ". . . when undersigned
counsel filed Civil Case No. 91-2192, neither he nor his clients
had actual notice of the earlier suit filed by petitioner. Civil
Case No. 91-2192 was filed in good faith." is clearly self-serving.
Besides, counsel is careful enough to use "actual notice" thereby
admitting, in effect, that some other form of notice was
received.5.ID.; INTERIM RULES AND REGULATION; FORUM SHOPPING;
CONCEPT; APPLICATION IN CASE AT BAR. In People v. Court of Appeals,
(101 SCRA 450 [1980]) We noted that forum-shopping has its roots in
the rule that a party should not be allowed to pursue simultaneous
remedies in two (2) different forums for it does havoc to the rule
on orderly procedure. Later, in E. Razon Inc. vs. Philippine Port
Authority, (G.R. No. 75197, Resolution of 31 July 1986, quoted in
Buan vs. Lopez, Jr., 145 SCRA 34, 38-39 [1986]) We specifically
declared that forum-shopping is an act of malpractice that is
proscribed and condemned as trifling with the courts and abusing
their processes; it is improper conduct that tends to degrade the
administration of justice. Thus, the said rule has been formalized
in Section 17 of the Interim Rules and Guidelines issued by this
Court on 11 January 1983 in connection with the implementation of
the Judiciary Reorganization Act (Batas Pambansa Blg. 129). A
review of the cases on forum-shopping reveals, however, that they
involve parties filing two (2) or more suits in different forums.
The rule has not been extended to a defendant who, for reasons
known only to him, commences a new action against the plaintiff
instead of filing a responsive pleading in the other case setting
forth therein, as cause of action, specific denials, special and
affirmative defenses or even counterclaims. Thus, Velhagen's and
King's motion to dismiss Civil Case No. 91-2069 by no means negates
the charge of forum-shopping as such did not exist in the first
place.D E C I S I O NDAVIDE, JR., J p:This is a petition for review
on certiorari under Rule 45 of the Rules of Court. Petitioner seeks
to set aside, for being inconsistent with law and jurisprudence,
the 22 January 1992 Order of respondent Branch 63 of the Regional
Trial Court (RTC) of Makati, Metro Manila which, among others,
denied a motion for reconsideration of its earlier dismissal, on
the ground of lis pendens, of a collection suit docketed as Civil
Case No. 91-2069 filed against private respondents Karl C. Velhagen
and Archimedes R. King, alleged operators of a business under the
names VICTORIA COURT, GMT CONSOLIDATED COMPANY and VICTORIA GROUP
OF COMPANIES. Petitioner further asks this Court, in the exercise
of its supervisory power over lower courts, to direct the
respondent Court to issue alias summonses to the respondent
corporations which were impleaded as additional defendants in the
amended complaint filed in said Civil Case No. 91-2069, and to
order the consolidation of this case in Branch 63 with Civil Case
No. 91-2192 pending before Branch 150 of the said court.The records
disclose the following antecedents:Petitioner Victronics Computers,
Inc., a domestic corporation engaged in the sale of computer
systems and peripherals, submitted a quotation for office systems
to service the networking requirements of various Victoria Court
branches.Satisfied with the said quotations, private respondents
Velhagen and King placed an order with the petitioner in a Purchase
Order 1 form on which is written "GMT CONSOLIDATED" above the
printed word COMPANY, and the address 2129 Pasong Tamo St., Makati,
Metro Manila below it. The private respondents ordered six (6) sets
of 80 DATA 386 computer system with peripherals for the net
consideration, after deducting a P7,000.00 discount, of P767,000.00
subject, to the following terms:a)Payment 50% down, 50% COD upon
completion of delivery.b)Delivery within 30 calendar days upon
receipt of P.O. and 50% down payment.c)Penalty 1% of total P.O.
amount per day of delay.These systems were to be delivered to the
parties therein indicated. namely: VCAD, VCCU, VCHI, VCNE, VCMA and
VCES. Per the delivery receipts, these acronyms stand for Victoria
Court drive-in motels located in different places. llcdThe fifty
per cent (50%) downpayment agreed upon was only paid. Thereupon,
petitioner delivered on 22 May 1991 three (3) of the six (6) sets
to Victoria Court/North EDSA, Victoria Court/Adriatico and Victoria
Court/Cuneta. 2 The remaining sets were delivered on 20 June 1991
to Victoria Court/Hillcrest, Victoria Court/Panorama and Victoria
Court/McArthur. 3 As revealed in the complaint in Civil Case No.
91-2192, each of the aforementioned establishments is owned by the
herein six (6) respondent corporations which, however, decided
sometime in 1986 "to band together for their mutual interest and
benefit, under the trade name and style of the Victoria Court Group
of Companies." 4 As further revealed in the Comment of these
corporations, they operate under a common management team wherein
respondents Velhagen and King are the General Manager and Chief
Executive Officer, respectively. 5 Only fifty per cent (50%) of the
purchase price of each of the sets delivered to the different
establishments was paid by the said corporations. 6 The outstanding
balance not having been paid within and even after the period
stipulated in the Purchase Order despite demands for its payment
made on Velhagen and King, the petitioner filed, on 26 July 1991,
with the RTC of Makati a Complaint 7 for a sum of money and damages
against:"KARL C. VELHAGEN and ARCHIE R. KING, who operate business
under the names VICTORIA COURT, GMT CONSOLIDATED COMPANY, and
VICTORIA GROUP OF COMPANIES."The case was docketed as Civil Case
No. 91-2069 and was raffled off to Branch 63 of the said court,
presided over by herein respondent Judge Julio R.
Logarta.Defendants Velhagen and King, herein private respondents,
were each served with a summons and a copy of the complaint on 8
August 1991. 8 The following day, 9 August 1991, the six (6)
respondent corporations 9 filed with the RTC of Makati a Complaint,
dated 7 August 1991, 10 for the nullification of the abovementioned
Purchase Order and for damages against the herein petitioner and
one Teodorico B. Kabigting. It is prayed for in the complaint
that:". . . judgment be rendered for the plaintiffs and against the
defendants declaring the contract to purchase the aforementioned
computer equipment null and void for fraud and undue influence, and
ordering defendants, jointly or severally, to pay plaintiffs:1.The
sum of P383,500.00 plus reasonable interest of at least 2% per
month from the month of May 1991 until the amount is actually paid,
as compensary (sic) or actual damages;2.The sum of P500,000.00 as
exemplary damages;3.The sum of P100,000.00 and a per appearance fee
of P1,000.00 as and by way of attorney's fees;4.The cost of the
suit."The case was docketed as Civil Case No. 91-2192 and was
raffled off to Branch 150 of the said court.Four (4) causes of
action are alleged in this complaint. In the first, the
corporations claim that defendant Kabigting, then the Manager of
the Management Information Services of the Victoria Court Group of
Companies who was instructed to canvass or conduct a price survey
of computer equipment supplied by different companies. connived
with Victor Mariano, the petitioner's General Manager and the
latter's old and close friend, in consideration of an alleged
promise of a substantial commission, to falsify the price survey
report and recommend the purchase of the computer equipment from
the petitioner corporation. A routine check of the transaction
likewise disclosed an overpricing of the equipment by at least
P200,000.00 while an audit revealed that the equipment sold was
among the surplus stock of the petitioner. In the second cause of
action, they allege that they forthwith informed the petitioner's
Mr. Mariano about the fraud and sought an audience with him for an
amicable solution to the controversy, but that the petitioner
failed to respond and instead referred the matter to its attorney
who in turn wrote a letter of demand for the payment of the balance
of the purchase price. Reacting, they also referred the matter to
their lawyer who wrote the petitioner a letter informing it that
the contract was being voided due to fraud and undue influence and
demanding that the fifty per cent (50%) downpayment be returned
with a reasonable interest at the rate of two per cent (2%) per
month in exchange for the return of "all computer equipment
purchased from defendant (herein petitioner) in the same condition
as they were received." 11 Upon the petitioner's failure to respond
positively to this offer, they filed the complaint. In the third
cause of action, they allege bad faith and a fraudulent intent on
the part of the defendants and ask for P500,000.00 as exemplary
damages. The fourth cause of action is for attorney's and
appearance fees.No copy of any document whatsoever is attached to
the complaint in said Civil Case No. 91-2192. cdrepOn 22 August
1991, private respondents Velhagen and King, represented by counsel
of record for the six (6) corporations in Civil Case No. 91-2192
the law firm of ANG, CADIZ and ASSOCIATES filed in Civil Case No.
91-2069 a Motion To Dismiss and/or To Suspend Proceedings based on
the following grounds: (a) plaintiff (petitioner herein) failed to
verify the complaint, (b) plaintiff failed to sue the proper
parties and (c) there is a prejudicial question or a pending
incident before another court. In support of these grounds, they
allege that (a) verification is a formal requirement under Section
6, Rule 7 of the Rules of Court; (b) the transaction in question
was not entered into by them in their personal capacities they
acted for and on behalf of the corporations they represent; hence,
the latter, who chose not to honor the contract, are the real
parties in interest; moreover, "Victoria Court, GMT Consolidated
Company and Victoria Group of Companies . . . are mere tradenames"
12 none of these named companies really exist; and (c) Civil Case
No. 91-2192 (erroneously written as 91-2191) for the nullification
of the subject purchase order has been filed against the petitioner
and is pending before Branch 150 of the trial court; accordingly.
"[A]t the very least, the Honorable Court (Branch 63) should
suspend all proceedings in this case because of the existence of a
prejudicial question or a pending incident before another court."
Elaborating thereon, said movants state:"There is a situation
wherein two suits were filed for different causes of action but
involving the same transaction or contract. One case, the one
pending before this Honorable Court, is for the enforcement of the
contract, or more specifically, for the collection of the balance
or sum of money as provided for in the contract. In the other case
before another court, what is being sought is the nullification or
the voiding of the same contract for alleged fraud and undue
influence. There is no debate that the more basic question is
before the other court, as the very validity of the contract sought
to be enforced is at issue there.It is clear therefore that the
second case is prejudicial to the determination of the first case.
Whether or not the suit pending before this Honorable Court will
prosper depends entirely on how the case in the other court will
fare. If for example the other court should determine that there is
(sic) sufficient grounds to nullify the contract, then the
collection suit before this Honorable Court must necessarily fail.
It is only after the other court should determined (sic) that the
questioned contract is valid can this Honorable Court proceed with
the collection case.Suspension of the proceedings before this
Honorable Court is therefore the prudent thing to do. This will
avoid the absurd situation wherein one court will find for one
party in one case, and the other court will find for the adverse
party in the second case. It is also an act of courtesy to a
co-equal branch of the same court." 13 They then end with an
alternative prayer, thus:"WHEREFORE, premises considered. it is
respectfully prayed that the instant Complaint be dismissed for all
or any of the grounds aforecited. On the alternative, it is prayed
that the proceedings before the Honorable Court be at least
suspended until the final resolution of the other case before
Branch 150 of the Regional Trial Court of Makati." 14 Meanwhile, on
5 September 1991, the herein petitioner filed in Civil Case No.
91-2192 a Special Appearance and Motion To Dismiss 15 asking the
trial court to dismiss the said case on grounds of improper service
of summons and lack of jurisdiction over it as defendant therein.
LibLexOn 16 September 1991, Branch 63 of the Makati RTC, through
respondent Judge Julio Logarta, issued an order dismissing Civil
Case No. 91-2069 because of litis pendentia. 16 The court gave the
following reasons, quoted verbatim, in support of its ruling:". . .
Clearly, the elements of litis pendentia, as a ground for a motion
to dismiss is present, to wit:'1.Identity of parties or at least
such as representing the same interests in both actions;2.Identity
of rights asserted and prayed for, the reliefs being founded on the
same facts;3.The identity of the presiding particulars should be
such that any judgment which may be rendered on the other action
will regardless of which party is successful amount to res judicata
in the action under consideration (FEU Dr. Nicanor Reyes Medical
Foundation vs. Trajano 152 SCRA, 453 (1987); Lopez vs. Villaruel,
G.R. No. 54323, 1988).'Further, it was held that 'the Rule does not
require as a ground for dismissal of a complaint that there is a
prior action, but only pending action (Teodoro vs. Mirasol 53 O.G.,
8088 99 Phil. 150).' Thus, the contention of plaintiff that the
case before this branch is 123 days older than Civil Case No.
91-2192 before Branch 150, hence, the one lodged with Branch 150
should be the one dismissed by litis pendentia is untenable.
Moreover, 'inclusion of additional parties in second case is no
obstacle to its dismissal on the ground of litis pendentia'
(Investors Finance Corp. vs. Judge Ebarle, G.R. No. 70640, June 29,
1988)." 17 On 19 September 1991, petitioner filed in Civil Case No.
91-2069 a contempt charge against respondents Velhagen and King for
forum-shopping, 18 claiming that after having respectively received
the summons and a copy of the complaint, both respondents did not
file an answer with compulsory counterclaim. Instead, "using the
names of certain corporations that represent the same interests
they advance, [they] filed a separate action one day later before
Branch 150 of the Makati Regional Trial Court in Civil Case No.
91-2192" 19 which arose from the same transaction or occurrence as
that obtaining in Civil Case No. 91-2069; as a matter of fact, the
complaint in the former reads like an answer with compulsory
counterclaim to the complaint in the latter. Hence, both are guilty
of forum-shopping, double dealing, trifling with the court and
abusing its processes. 20 Meanwhile, acting on the petitioner's
motion to dismiss Civil Case No. 91-2192, Branch 150 of the court
below, per Judge Zeus Abrogar, handed down an order, on 25
September 1991, directing in order to remove any doubt on the
propriety of the service of summons the re-service of summons on
the petitioner. 21 On 4 October 1991, after allegedly accidentally
learning of the 16 September 1991 Order of dismissal of Civil Case
No. 91-2069, petitioner requested, and thereafter obtained, a
photocopy of the said order which was not, unfortunately, served on
the petitioner's counsel until then. 22 On 9 October 1991,
petitioner filed in Civil Case No. 91-2069 an Ex Abundante Cautela
Motion To Refer Forum-Shopping Charge to Executive Judge. 23 On the
same date, petitioner filed a Motion for Reconsideration 24 of the
said order of dismissal.On 14 October 1991, after proper service of
summons to it, petitioner filed a Motion To Dismiss 25 Civil Case
No. 91-2192 on the grounds of litis pendentia and forum
shopping.Thereupon, on 11 December 1991, petitioner filed in Civil
Case No. 91-2069 a motion for the consolidation 26 of the two (2)
cases before Branch 63 where the prior case was filed; on 6 January
1992, it also filed in the same case a Manifestation Pro Hac Vice
27 wherein it stated that there was technically no pending action
before" Branch 150 as it had not yet acquired jurisdiction over the
person of the petitioner (due to improper service of summons) as
evidenced by the 25 September 1991 Order of Judge Abrogar
himself.In the meantime, however, petitioner filed in Civil Case
No. 91-2192 an Answer with compulsory Counterclaim 28 dated 20
January 1992. One of the Special and Affirmative Defenses averred
therein is the pendency in Branch 63 of Civil Case No. 91-2069.
Also on 20 January 1992, petitioner filed in Civil Case No. 91-2069
an Amended Complaint impleading therein, as additional defendants,
the six (6) corporations which sued as plaintiffs in Civil Case No.
91-2192. 29 On 7 February 1992, the Clerk of Court of Branch 63
sent the petitioner, by registered mail, 30 a copy of the 22
January 1992 Order in Civil Case No. 91-2069 31 which resolved the
various motions filed by the latter. The said order
reads:"Consequently, the Motion for Consolidation filed by
plaintiff on December 11, 1991, perforce, should also be DENIED for
being moot and academic.WHEREFORE, premises considered, the Motion
for Reconsideration dated October 7, 1991; the Contempt Charge for
Forum-Shopping; the Motion to Refer the Contempt Charge to the
Executive Judge; the Motion for Consolidation; and, Manifestation
Pro Hac Vice are hereby DENIED, and the order dated September 16,
1991, dismissing the above-entitled case is hereby
REITERATED."Anent the particular issue of forum shopping, the lower
court held that the same "is negated by the move of defendants
(private respondents Velhagen and King) to dismiss the case filed
before this court [Civil Case No. 91-2069], to give way to that
which pends before Branch 150 [Civil Case No. 91-2192]." And, on
the matter of litis pendentia, it reiterated its ruling that, the
filing of one action ahead of another is not decisive on the issue
of which of the two (2) identical actions in two (2) separate
courts of concurrent jurisdiction should be dismissed. cdllAs a
consequence of this 22 January 1992 Order, respondent Court, in
Civil Case No. 91-2069, issued on 20 February 1992 an order denying
the petitioner's motion for the issuance of an alias summons. 32
Hence, the instant petition wherein the petitioner claims that the
respondent Court erred:"(1)in equating respondents' ground of
'pending incident before another court' to ask for suspension of
proceedings with litis pendentia under Rule 16 when respondents'
grounds to ask for dismissal were only (a) lack of verification;
and (b) not having initially impleaded respondent corporations as
proper parties grounds not found in Rule 16;(2)in ruling, with
precipitate haste, and in insisting, despite a chance to
reconsider, that there was another pending action at the time of
dismissal when technically there was none since Branch 50 was still
trying to acquire jurisdiction over petitioner's person and to
notify petitioner by new summons some 2 weeks later about the
filing of the second;(3)in preferring to maintain the second action
over the first, which (a) was 123 cases (sic) older than the
second; (b) was the one pending when the second one was just filed;
and (c) was meant to collect the unpaid balance of close to half a
million pesos that respondents still owe and which in substantial
justice was entitled to be heard if not preferentially over the
second, at least jointly with the second upon consolidation;(4)in
disregarding the Supreme Court's rulings in vda. de Tolentino v. de
Guzman, Pambusco v. Ocfemia, Ramos v. CIR, and other applicable
decisions;(5)in not finding, by itself or through the executive
judge, that the institution of the second action was a specie of
forum shopping, in she light of DBP v. IAC, given that (a) the
second action came 2 weeks later after the first complaint; (b) the
second complaint was filed after respondents had already received a
copy of the first; (c) respondents complaint reads like an answer
with compulsory counterclaim to petitioner's complaint; and (d) the
second action arose from the same transaction, facts, and
circumstances identical to those in an already pending
proceeding;(6)in totally ignoring the existence of the amended
complaint; and(7)in releasing an order on February 7, 1992 that did
not conform with the prevailing state of affairs of the action as
of that time and with applicable Supreme Court decisions since (a)
the amended complaint had already rendered the first complaint
functus oficio along with resolutions that attached to it; (b) the
motion for alias summons should have been granted as a matter of
course; and (c) consolidation should have afterwards been granted
to promote the Supreme Court's avowed preference for consolidation
as expressed in Active Wood Products v. CA because it is a
'beneficial and desirable' practice." 33 On 10 June 1992, 34 after
the private respondents filed their Comment 35 to the petition (on
20 April 1992) and the petitioner filed its Reply 36 thereto (on 28
May 1992), We resolved to give due course to the petition and
required the parties to submit their respective Memoranda, which
they subsequently complied with.The pivotal issues raised in the
instant petition are: (1) whether or not the respondent Court erred
in dismissing, on the ground of litis pendentia, Civil Case No.
91-2069 which has priority with respect to the time of filing, and
(2) whether or not the private respondents are guilty of
forum-shopping.It is a rule that for litis pendentia to be invoked
as a ground for the abatement or dismissal of an action, the
concurrence of the following requisites is necessary: (a) identity
of parties, or at least such as representing the same interest in
both actions; (b) identity of rights asserted and relief prayed
for, the relief being founded on the same facts; and (c) the
identity in the two (2) cases should be such that the judgment that
may be rendered in the pending case would, regardless of which
party is successful, amount to res judicata in the other. 37 The
presence of all the foregoing requisites with respect to Civil Case
No. 91-2069 and Civil Case No. 91-2192 is not controverted by the
parties. As a matter of fact, both invoked these identities in
their respective motions to dismiss.As to the first requirement, it
is quite evident that the petitioner is a party in both cases.
There is, however, an initial confusion as to the personalities of
the defendants in Civil Case No. 91-2069 and the plaintiffs in
Civil Case No. 91-2192, who are claimed to be natural persons doing
business under the names of "Victoria Court, GMT Consolidated
Company and Victoria Group of Companies" and juridical persons (the
six (6) corporations), respectively. In the light of the admission
by the six (6) corporations that they banded together for their
mutual interest and benefit under the trade name and style of the
Victoria Group of Companies; that they put up a common management
team with respondents Velhagen and King as General Manager and
Chief Executive Officer, respectively; that the purchase order in
question is the official act of the said officers; and that the
computer sets were in fact received by them for which they each
paid a downpayment of fifty per cent (50%) of the purchase price
thereof, there can be no doubt that the defendants in the first
case and the plaintiffs in the second case represent the same
interests.As regards the second element, a careful reading of the
allegations in the parties' respective complaints and motions to
dismiss in the two (2) civil actions below reveals that both assert
rights founded on an identical set of facts which give rise to one
basic issue the validity of the contract in question, the purchase
order for the computer equipment. Civil Case No. 91-2069 actually
involves an action for specific performance; it thus upholds the
contract and assumes its validity. Civil Case No. 91-2192, on the
other hand, is for the nullification of the contract on the grounds
of fraud and vitiated consent. While ostensibly the cause of action
in one is opposite to that in the other, in the final analysis,
what is being determined is the validity of the contract. It would
not have been unlikely that in its answer filed in Civil Case No.
91-2192, the petitioner would merely reiterate its allegations in
the complaint in Civil Case No. 91-2069 sustaining and invoking the
validity of the purchase order and setting up lis pendens as a
defense. This is what it exactly did. It would not have been
likewise unlikely that the defense of the private respondents in
Civil Case No. 91-2069 would be one in pursuit of their theory, as
plaintiffs, in Civil Case No. 91-2192. Thus, the identity of rights
asserted cannot be disputed. Howsoever viewed, it is beyond cavil
that regardless of the decision that would be promulgated in Civil
Case No. 91-2069, the same would constitute res judicata on Civil
Case No. 91-2192 and vice-versa. But which case should be abated?
Squarely put, should it be the second, which was filed fourteen
(14) days after the filing of the first, or should it be the first?
LLjurLike res judicata as a doctrine, litis pendentia as a
principle is a sanction of public policy against multiplicity of
suits. 38 Differently put, "[T]he principle upon which a 'plea of
another action pending' is sustained is that the latter action is
deemed unnecessary and vexatious." 39 There is no hard and fast
rule that governs the determination of which of the actions should
be abated. A review of relevant cases decided by this Court
discloses that generally, it is the second case which is abated.
Indeed, it seems that the maxim Qui prior est tempore, potior est
jure 40 controls.To be sure, there are limitations to this rule. At
common law, if it appears to the court that the second action was
not brought to harass or vex the defendant, and is not in fact
vexatious, it may refuse to abate the second action, allow it to
stand, and order the first one to be discontinued on proper terms.
The court may also permit the plaintiff to discontinue the first
suit and thereby defeat the plea in abatement where the second suit
is necessary in order to protect and secure the plaintiff's full
rights, or where the abatement of the second suit is necessary in
order to protect and secure the plaintiff's full rights, or where
the abatement of the second would result in possible loss of
substantial rights on the part of the plaintiff. 41 In our
jurisdiction, the law itself 42 does not specifically require that
the pending action which would hold in abatement the other must be
a pending prior action. Thus, in Teodoro vs. Mirasol, 43 this Court
observed:"It is to be noted that the Rules do not require as a
ground for dismissal of a complaint that there is a prior pending
action. They provide that there is a pending action, not a pending
prior action. The fact that the unlawful detainer suit was of a
later date is no bar to the dismissal of the present action. We
find, therefore, no error in the ruling of the court a quo that
plaintiff's action should be dismissed on the ground of the
pendency of another more appropriate action between the same
parties and for the same cause."In Roa-Magsaysay vs. Magsaysay, 44
wherein it was the first case which was abated, this Court
ruled:"In any event, since We are not really dealing with
jurisdiction out mainly with venue, considering both courts
concerned do have jurisdiction over the causes of action of the
parties herein against each other, the better rule in the event of
conflict between two courts of concurrent jurisdiction as in the
present case, is to allow the litigation to be tried and decided by
the court which, under the circumstances obtaining in the
controversy, would, in the mind of this Court, be in a better
position to serve the interests of justice, considering the nature
of the controversy, the comparative accessibility of the court to
the parties, having in view their peculiar positions and
capabilities, and other similar factors. Without in any manner
casting doubt as to the capacity of the Court of First Instance of
Zambales to adjudicate properly cases involving domestic relations,
it is easy to see that the Juvenile and Domestic Relations Court of
Quezon City which was created in order to give specialized
attention to family problems, armed as it is with adequate and
corresponding facilities not available to ordinary courts of first
instance, would be able to attend to the matters herein dispute
with a little more degree of expertise and experience, resulting in
better service to the interests of justice. A reading of the causes
of action alleged by the contending spouses and a consideration of
their nature, cannot but convince Us that, since anyway, there is
an available Domestic Court that can legally take cognizance of
such family issues, it is better that said Domestic Court be the
one chosen to settle the same as the facts and the law may
warrant."We made the same pronouncement in Ramos vs. Peralta: 45
"Finally, the rule on litis pendentia does not require that the
later case should yield to the earlier case. What is required
merely is that there be another pending action, not a prior pending
action. Considering the broader scope of inquiry involved in Civil
Case No. 4102 and the location of the property involved, no error
was committed by the lower court in deferring to the Bataan court's
jurisdiction."An analysis of these cases unravels the ratio for the
rejection of the priority-in-time rule and establishes the criteria
to determine which action should be upheld and which is to be
abated. In Teodoro, this Court used the criterion of the more
appropriate action. We ruled therein that the unlawful detainer
case, which was filed later, was the more appropriate action
because the earlier case for specific performance or declaratory
relief filed by the lessee (Teodoro) in the Court of First Instance
(CFI) to seek the extension of the lease for another two (2) years
or the fixing of a longer term for it, was "prompted by a desire on
plaintiff's part to anticipate the action for unlawful detainer,
the probability of which was apparent from the letter of the
defendant to the plaintiff advising the latter that the contract of
lease expired on October 1, 1954." 46 The real issue between the
parties therein was whether or not the lessee should be allowed to
continue occupying the leased premises under a contract the terms
of which were also the subject matter of the unlawful detainer
case. Consonant with the doctrine laid down in Pue vs. Gonzales 47
and Lim Si vs. Lim, 48 the right of the lessee to occupy the land
leased against the lessor should be decided under Rule 70 of the
Rules of Court; the fact that the unlawful detainer case was filed
later was then of no moment. Thus, the latter was the more
appropriate action.The "more appropriate action" criterion was also
applied in Ramos vs. Peralta, 49 Ramos, the lessee of a fishpond
located in Pilar, Bataan, sought to consign with the CFI of Manila
the advance rentals for the fishpond for 15 March 1976 and 15 June
1976 after its tender was refused by the lessors (Ortaez spouses)
50 and after he was informed by the vendee of the property, P.R.
Roman Inc. in its letter of 1 May 1976 that it had acquired the
property and would take possession thereof on 16 May 1976. Ramos
filed the consignation case, docketed as Civil Case No. 103647,
with the lower court on 2 August 1976. Meanwhile, on 13 August
1976, P.R. Roman Inc. filed with the CFI of Bataan a complaint for
quieting of title against Ramos; this case was docketed as Civil
Case No. 4102. Consequently, P.R. Roman, Inc. filed a motion to
dismiss Civil Case No. 103647 on the ground of, inter alia, lis
pendens. The motion was granted. On appeal, this Court affirmed the
lower court's decision considering the "broader scope of inquiry
involved in Civil Case No. 4102 and the location of the property
involved." cdphilIn Roa-Magsaysay, the criterion used was the
consideration of the interest of justice. In applying this
standard, what was asked was which court would be "in a better
position to serve the interests of justice," 51 taking into account
(a) the nature of the controversy, (b) the comparative
accessibility of the court to the parties and (c) other similar
factors. While such a test was enunciated therein, this Court
relied on its constitutional authority to change venue to avoid a
miscarriage of justice.It is interesting to note that in common
law, as earlier adverted to, and pursuant to the Teodoro vs.
Mirasol 52 case, the bona fides or good faith of the parties is a
crucial element. In the former, the second case shall not be abated
if not brought to harass or vex; in the latter, the first case
shall be abated if it is merely an anticipatory action or, more
appropriately, an anticipatory defense against an expected suit a
clever move to steal the march from the aggrieved party.In the case
at bar, We do not hesitate to rule that the second case, Civil Case
No. 91-2192, was filed not so much upon the inspiration of
unadulterated good faith to seek redress for a genuine wrong
committed but more to vex or harass in another forum the plaintiff
in the first case, the herein petitioner. What cannot escape Our
attention is the undue, if not indecent, haste in the preparation
of the complaint in Civil Case No. 91-2192 by the counsel for the
defendants in Civil Case No. 91-2069. Civil Case No. 91-2192 is for
the nullification of a contract the purchase order signed by no
less than the authorized officers of the six (6) respondent
corporations. It is, therefore, based upon a written document.
Section 7, Rule 8 of the Rules of Court expressly provides
that:"SECTION 7.Action or defense based on document. Whenever an
action or defense is based upon a written instrument or document,
the substance of such instrument or document shall be set forth in
the pleading, and the original or a copy thereof shall be attached
to the pleading as an exhibit, which shall be deemed to be a part
of the pleading, or said copy may with like effect be set forth in
the pleading." (Emphasis supplied).There was absolutely no
compliance with this requisite as no copy of the purchase order was
set forth in the body of the complaint or attached to the complaint
itself. The non-observance of this simple yet basic rule cannot be
attributed to the ignorance of the lawyers who, measured by their
pleadings in this case, appear to be experienced and well-versed in
the law, but to the frenzied efforts to file the complaint at the
earliest possible time. To make it appear that the complaint was
prepared before service of summons on the defendants in Civil Case
No. 91-2069, it was dated 7 August 1991. 53 It was, however, filed
only on 9 August 1991 although the office of the abovementioned
lawyers is located at 2129 Pasong Tamo St., 54 Makati, Metro
Manila, within the same municipality wherein the court sits.
Moreover, all six (6) corporations likewise have their principal
office at the same Pasong Tamo address. 55 The private respondents'
claim in their Comment that:". . . when undersigned counsel filed
Civil Case No. 91-2192, neither he nor his clients had actual
notice of the earlier suit filed by petitioner. Civil Case No.
91-2192 was filed in good faith." 56 is clearly self-serving.
Besides, counsel is careful enough to use "actual notice" thereby
admitting, in effect, that some other form of notice was
received.Being merely vexatious, Civil Case No. 91-2192 is the
abatable case.Independently of the element of bona fides, the fact
remains that under the peculiar circumstances attending the
transaction in question, the first case for specific performance is
the more appropriate action. In the first place, petitioner, the
unpaid seller in the amount of fifty per cent (50%) of the purchase
price, had completely delivered the six (6) computer sets to the
establishments of the six (6) respondent corporations within the
period stipulated in the purchase order. Despite their assertion in
the complaint in Civil Case No. 91-2192 that the equipment was
"outmoded and obsolete," 57 they neither claim the inability to use
the computer sets nor insinuate that they had, at any time, called
upon the petitioner to account under its warranty against hidden
defects. 58 They did not even offer to return the computer
equipment. Thus, in reality, it is the petitioner who has been
aggrieved; in availing of the remedy of specific performance
allowed under Article 1191 of the Civil Code, it was acting well
within its rights. The subsequent action for the annulment of the
contract on grounds of fraud and vitiated consent is nothing but a
mere defense thereto. prLLRespondents Velhagen and King very well
acknowledged the weakness of the defense of lis pendens. In their
Motion to Dismiss and/or Suspend Proceedings, 59 they did not
categorically refer to Civil Case No. 91-2192 as a pending action.
In lieu thereof, they chose the phrase "prejudicial question or a
pending incident before another court;" in consonance therewith,
they even prayed that if Civil Case No. 91-2069 may not be
dismissed for any of the grounds therein invoked, it should be
suspended until the final resolution of Civil Case No. 91-2192.
Fortunately for them, respondent Court read the phrase "prejudicial
question or a pending incident" as lis pendens and thereafter
decreed the dismissal of said Civil Case No. 91-2069. This clearly
amounted to grave abuse of discretion.And now on the issue of
forum-shopping.In its Order of 22 January 1992, respondent Court
held:"Likewise, the Court finds no basis to cite defendant in
contempt of court, allegedly for engaging in forum-shopping as this
allegation is negated by the move of defendants to dismiss the case
filed before this Court, to give way to that which pends before
Branch 150." 60 Respondent Court does not seem to have a full grasp
of the underpinnings of forum-shopping. In People vs. Court of
Appeals, 61 We noted that forum-shopping has its roots in the rule
that a party should not be allowed to pursue simultaneous remedies
in two (2) different forums for it does havoc to the rule on
orderly procedure. Later, in E. Razon Inc. vs. Philippine Port
Authority, 62 We specifically declared that forum-shopping is an
act of malpractice that is proscribed and condemned as trifling
with the courts and abusing their processes; it is improper conduct
that tends to degrade the administration of justice. Thus, the said
rule has been formalized in Section 17 of the Interim Rules and
Guidelines issued by this Court on 11 January 1983 in connection
with the implementation of the Judiciary Reorganization Act (Batas
Pambansa Blg. 129). A review of the cases on forum-shopping
reveals, however, that they involve parties filing two (2) or more
suits in different forums. 63 The rule has not been extended to a
defendant who, for reasons known only to him, commences a new
action against the plaintiff instead of filing a responsive
pleading in the other case setting forth therein, as causes of
action, specific denials, special and affirmative defenses or even
counterclaims. Thus, Velhagen's and King's motion to dismiss Civil
Case No. 91-2069 by no means negates the charge of forum-shopping
as such did not exist in the first place. prLLIN VIEW OF THE
FOREGOING, the instant petition is hereby GRANTED. The Order of
respondent Court of 16 September 1991 dismissing Civil Case No.
91-2069 is SET ASIDE and a new one is entered DISMISSING instead,
on ground of lis pendens, Civil Case No. 91-2192 of Branch 150 of
the Regional Trial Court of Makati, with costs against the
defendants therein. The Order of respondent Court of 22 January
1992 in Civil Case No. 91-2069 is hereby MODIFIED by setting aside
that portion thereof denying the motion to reconsider its Order of
16 September 1991 and declaring that portion denying the motion for
consolidation as moot and academic.Cost against private
respondents.SO ORDERED.Gutierrez, Jr., Bidin, Romero and Melo, JJ
., concur.
THIRD DIVISION[G.R. No. 28883. June 3, 1992.]LOURDES G. SUNTAY,
plaintiff-appellant, vs. HEROICO M. AGUILUZ, ET AL.,
defendants-appellees.SYLLABUS1.REMEDIAL LAW; CIVIL PROCEDURE;
MOTION TO DISMISS; LIS PENDENS AS A GROUND; REQUISITES. The
requisites of lis pendens as a ground for dismissal of a complaint
are: (1) there must be the same parties or at least such as to
represent the same interest; (2) there must be the same rights
asserted and the same relief prayed for, which relief must be
founded on the same facts and the title or essential basis of the
relief sought must be the same; (3) the identity in these
particulars should be such that if the pending case had already
been disposed of, it would be pleaded in bar as a former
adjudication of the same matter between the same parties.2.ID.;
ID.; ID.; ID.; ID.; NOT PRESENT IN CASE AT BAR. Civil Case No.
Q-10313, although cleverly denominated as one for specific
performance with mandatory and prohibitory injunction, is in
reality principally one for injunction to prevent the foreclosure
of the mortgage and to fix a new period to pay the remaining unpaid
balance of P40,000.00 which was to be paid on or before 6 August
1966 without any need for a demand. Upon the other hand, Civil Case
No. Q-10343 is a suit for specific performance which asks for the
payment of the balance and the liquidated damages and foreclosure
of the mortgage. The causes of action and the reliefs sought are
entirely different. A decision in the first will not amount to res
judicata against the second case for whether or not defendants
prevail in the former, petitioner's right to the unpaid balance and
the foreclosure of the mortgage would still be litigable.3.ID.;
ID.; ID.; ID.; REQUIRES A PENDING ACTION AND NOT A PENDING PRIOR
ACTION. To the mind of this Court, if any case should be dismissed
at all, it should be Civil Case No. Q-10313. That this case was
filed ahead of the other is of no moment for, as this Court held in
Teodoro vs. Mirasol: (99 Phil. 150 [1956]) "It is to be noted that
the Rules do not require as a ground for dismissal of a complaint
that there is a prior pending action. They provide that there is a
pending action, not a pending prior action. The fact that the
unlawful detainer suit was of a later date is no bar to the
dismissal of the present action." Plaintiff then had all the right
to file the motion to dismiss Civil Case No. Q-10313.
Unfortunately, however, while she actually filed such a motion, she
failed to invoke lis pendens; she merely raised: (a)
unenforceability of the demands under the statute of frauds and (b)
lack of cause of action as grounds for the motion. Thus, the same
was denied by the trial court on 7 December 1966.4.ID.; ID.;
CONSOLIDATION OF ACTION; RULE; CASE AT BAR. The trial court,
therefore, committed an error in dismissing Civil Case No. Q-10343.
What it should have done was to order its consolidation, for joint
hearing and trial, with Civil Case No. Q-10313 pursuant to Section
1, Rule 31 of the Rules of Court. As ruled by this Court in Ramos
vs. Ebarle: (182 SCRA 245 [1990]) ". . . And, whatever difficulties
or inconvenience may be entailed if both causes of action are
pursued on separate remedies, the proper solution is not the
dismissal order of the trial court. The possible consolidation of
said cases, as well as stipulations and appropriate modes of
discovery, may well be considered by the court below to subserve
not only procedural expedience but, more important, the ends of
justice."D E C I S I O NDAVIDE, JR., J p:This is an appeal, on a
pure question of law, from the Orders of 7 January 1967 and 26
September 1967 of Branch IX (Quezon City) of the then Court of
First Instance (now Regional Trial Court) of Rizal in Civil Case
No. Q-10343 which respectively dismissed said case on the ground of
pendency of another action, Civil Case No. Q-10313, entitled
Heroico M. Aguiluz, et al. vs. Lourdes G. Suntay, and denied the
motion for its reconsideration.The antecedent facts are not
disputed.On 9 June 1966, plaintiff and defendants executed a Deed
of Sale with Real Estate Mortgage under which the former sold to
the latter Lot 12, Block S-38 of the Diliman Estate Subdivision
located in the District of Diliman, Quezon City, containing an area
of 441 square meters, and more particularly described in Transfer
Certificate of Title No. 82529 of the Registry of Deeds of Quezon
City, subject to the following conditions: LLphil"WHEREFORE, for
and in consideration of the sum of SIXTY THOUSAND (P60,000.00)
PESOS, Philippine Currency, the VENDOR-MORTGAGEE hereby transfers,
sells and conveys to the VENDEE-MORTGAGOR the above-described
parcel of land together with all the improvements existing thereon
subject to the following terms and conditions:1.That the
VENDOR-MORTGAGEE acknowledges having receipt (sic) the sum of
TWENTY THOUSAND (P20,000.00) PESOS as partial payment and the
VENDEE-MORTGAGOR hereby binds himself to pay the balance of FORTY
THOUSAND (P40,000.00) PESOS on or before August 6, 1966, without
need of any demand;2.That failure on the part of the
VENDEE-MORTGAGOR to pay the balance of the purchase price in the
sum of FORTY THOUSAND (P40,000.00) PESOS in full on the agreed
date, the VENDEE-MORTGAGOR shall pay to the VENDOR-MORTGAGEE the
sum of TEN THOUSAND (P10,000.00) PESOS as liquidated damages.And to
secure unto the VENDOR-MORTGAGEE the due and punctual payment of
the balance of the purchase price of FORTY THOUSAND (P40,000.00)
PESOS in accordance with the terms herein agreed upon, the
VENDEE-MORTGAGOR hereby constitutes in favor of the said
VENDOR-MORTGAGEE a valid and voluntary first mortgage upon the
property subject of this Deed of Sale with Real Estate mortgage;And
the conditions of this mortgage is (sic) such that if the
VENDEE-MORTGAGOR, his heirs, successors and assigns shall
faithfully comply with the terms agreed upon by the parties as
contained in this instrument, then this mortgage shall have no
further force or effect; otherwise, the said mortgage shall remain
binding;That if at any time the VENDEE-MORTGAGOR fail (sic) to
comply with the terms and conditions herein stipulated, the
VENDOR-MORTGAGEE may at her discretion declare the mortgage
defaulted and immediately foreclose this mortgage judicially or
extra-judicially under Act No. 3135, as amended by Act No. 4119,
and in case of foreclosure, the VENDOR-MORTGAGEE on filing the
corresponding petition shall be appointed receiver without any
bond, and the said VENDOR-MORTGAGEE shall at once take charge of
the mortgaged property and to (sic) hold possession of the same,
and the rents and profits derived from the mortgaged property
before the sale, less the costs of expenses of the receivership,
the expenses of collection and attorney's fees, which shall be
TWENTY FIVE (25%) PER CENT of the total indebtedness, but which
shall not be less than FIVE THOUSAND (P5,000.00) PESOS exclusive of
all costs and fees allowed by law, shall be applied first to the
payment of interests and then to the capital of the indebtedness
secured herein and such rents and profits that may be obtained
after the sale will belong to the bidder to whom the property shall
have been adjudicated;That all the expenses in connection with the
registration of this instrument, attorney's fee for the preparation
of this document and all other expenses to effect the transfer of
the above-mentioned Transfer Certificate of Title to the
VENDEE-MORTGAGOR shall be for his exclusive account.That during the
existence of this mortgage the VENDEE-MORTGAGOR shall insure the
building in the abovementioned parcel of land in the amount of
FORTY THOUSAND (P40,000.00) PESOS against all insurable risks with
a reputable insurance Company to be chosen by the VENDOR-MORTGAGEE
and the policy shall be endorsed to the VENDOR-MORTGAGEE;" 1
Defendants failed to pay the P40,000.00 on due date, 6 August 1966.
Plaintiff demanded payment and threatened to foreclose the
mortgage.On 9 August 1966, defendants filed a complaint against
herein plaintiff for specific performance with preliminary
mandatory and prohibitory injunction with the then Court of First
Instance of Rizal, which was docketed as Civil Case No. Q-10313.
They allege therein that upon the execution of the contract, the
parties agreed that herein plaintiff would simultaneously deliver
to the defendants the certificate of title and the tax declaration
of the lot, the latest realty tax receipt, lot plan and vicinity
map and building permit for the existing building; the defendants
repeatedly made it known to the plaintiff that in order to fully
pay the balance of the purchase price, the former needed to obtain
a loan from the Social Security System (SSS) or any other lending
institution, thus necessitating the transfer of the property in
their names; for no justifiable reason and despite repeated
demands, plaintiff refused to turn over to them the above
documents, resulting in the delay in the filing of an application
for a housing loan with the SSS; even if the application had been
processed, however, the proceeds of the loan cannot be released
until the certificate of title is surrendered to them and a new
certificate of title is issued to them; plaintiff has threatened to
foreclose the mortgage, immediately take possession of the property
as receiver and enforce the penalty clause of the contract, which
would cause them irreparable injury; if the foreclosure and/or
receivership proceedings are initiated by herein plaintiff, their
loan application would be disapproved by the SSS; and that it is
essential that the court fix a reasonable period, to commence on
the date the certificate of title is delivered to them, within
which they may comply with their obligation to pay the unpaid
balance of P40,000.00 of the purchase price. They pray that: (a) a
writ of preliminary mandatory and prohibitory injunction be issued
ordering the plaintiff to surrender the certificate of title and
enjoining her or her representative from, inter alia, proceeding
with the threatened foreclosure of the mortgage, respective; and
(b) after trial, judgment be rendered making the injunction
permanent, fixing a reasonable period, from the date of delivery of
the certificate of title, within which they may comply with their
above obligation and awarding to them attorney's fees, exemplary
damages and costs. 2 On the day the above complaint was filed, the
court 3 issued an Order setting the hearing for the application for
injunction on 20 August 1966, and directing the parties to maintain
the status quo in the meantime.On 18 August 1966, before being
served with summons, a copy of the complaint in Civil Case No.
Q-10313 and a copy of the above Order, herein plaintiff filed with
the same court a complaint for recovery of the unpaid balance of
the purchase price, the penalty provided for in the contract and
foreclosure of the mortgage. The complaint was docketed as Civil
Case No. Q-10343 and was raffled to another branch of the court. In
said complaint, plaintiff prays for: (a) judgment ordering the
defendants to pay her the amount of P50,000.00 (P40,000.00
representing the unpaid balance and P10,000.00 representing the
liquidated damages) with legal interest from the date of the filing
of the complaint until the same is fully paid and a sum equivalent
to 25% thereof as attorney's fees, plus certain sums as attorney's
fees for the preparation of the document, documentary stamps and
registration fees, and decreeing the foreclosure of the mortgage
and sale of the property in a public auction; and (b) an Order
appointing her, during the pendency of the action, as receiver of
the property. 4 Plaintiff subsequently received the summons and a
copy of the complaint in Civil Case No. Q-10313 on 20 August 1966.
5 On 2 September 1966, defendants filed a motion to dismiss
plaintiff's Civil Case No. Q-10343 on the following grounds:
LLpr"1.That there is another action pending between the same
parties for the same cause;2.That the complaint states no cause of
action." 6 The other action referred to is Civil Case No.
Q-10313.On 13 September 1966, defendants filed a Supplemental
Complaint. 7 On 17 September 1966, plaintiff filed an Opposition to
the motion to dismiss 8 alleging therein that the two (2)
complaints are not for the same cause of action. While Civil Case
No. Q-10313 prays for: (a) the issuance of a mandatory and
prohibitory injunction to compel her to deliver the certificate of
title and to prevent her from foreclosing the mortgage, and (b) the
fixing of a period within which herein defendants will pay the
balance of the purchase price of the property, Civil Case No.
Q-10343 is an action for foreclosure of mortgage. She further
alleges that her complaint states a valid cause of action as
defendants failed to pay the balance of the purchase price on due
date.On 7 January 1967, the trial court issued an Order dismissing
Civil Case No. Q-10343 on the ground of pendency of another action
"between the same parties for specific performance of the very
contract subject of this suit for foreclosure, and it appearing
that the issue raised in this present action can well and should be
litigated in the suit for specific performance." 9 Her motion for
reconsideration 10 having been denied by the trial court in its
Order of 26 September 1967, 11 plaintiff filed her notice of appeal
on 21 October 1967, 12 deposited a case appeal bond 13 and filed a
record on appeal which was approved on 12 March 1968.In her Brief,
plaintiff makes the following assignment of errors:"IThe lower
court erred in holding that there is pending an action between the
same parties for specific performance of the very contract subject
of this suit for foreclosure, and it appearing further that the
issues raised in this present action can well and should be
litigated in the suit for specific performance.IIThe lower court
erred in dismissing the complaint."Defendants did not file their
Appellee's Brief despite three (3) extensions of time granted by
this Court. 14 Hence, this Court considered this case submitted for
decision without the Appellee's Brief. 15 The appeal is
meritorious.As could be gathered from the body of the complaint,
Civil Case No. Q-10313 is an action for injunction filed in
anticipation of the foreclosure of the mortgage which plaintiff had
threatened to pursue if defendants failed to pay the unpaid balance
of P40,000.00 on due date. The contract explicitly provides that
said balance shall be paid "on or before August 6, 1966 without
need of any demand." Defendants' self-serving characterization
thereof as an action for "specific performance" is calculated to
obfuscate the issues and mislead the trial court. As this Court
sees it, defendants herein merely tried to beat the plaintiff to
the draw 16 and pre-empt the latter's legal moves.The other causes
of action in Civil Case No. Q-10313 are but mere embellishments to
give a semblance of viability to the alleged grievance of herein
defendants. The contract fails to indicate that (a) it was the
intention of the parties to consider the delivery of the
certificate of title and the other documents mentioned therein as a
condition precedent before the balance of P40,000.00 would be paid
or (b) such delivery constitutes a suspensive condition the
non-fulfillment of which prevents the obligation of defendants to
pay said balance from arising. 17 On the contrary, as earlier
alluded to, defendants unqualifiedly bound themselves to pay the
balance on or before 6 August 1966 without need of any demand.
Besides, since under the contract the property was mortgaged to the
plaintiff as security for the payment of the unpaid balance of
P40,000.00, plaintiff, as mortgagee, was entitled to possession of
the certificate of title. The filing then of Civil Case No. Q-10313
was a clever ruse to avoid compliance with defendants' obligation.
Even if it were not so, lis pendens does not apply in this case.
The requisites of lis pendens as a ground for dismissal of a
complaint are: (1) there must be the same parties or at least such
as to represent the same interest; (2) there must be the same
rights asserted and the same relief prayed for, which relief must
be founded on the same facts and the title or essential basis of
the relief sought must be the same; (3) the identity in these
particulars should be such that if the pending case had already
been disposed of, it would be pleaded in bar as a former
adjudication of the same matter between the same parties. 18 While
concededly, the first requisite obtains in this case, the last two
are conspicuously absent. As earlier discussed, Civil Case No.
Q-10313, although cleverly denominated as one for specific
performance with mandatory and prohibitory injunction, is in
reality principally one for injunction to prevent the foreclosure
of the mortgage and to fix a new period to pay the remaining unpaid
balance of P40,000.00 which was to be paid on or before 6 August
1966 without any need for a demand. Upon the other hand, Civil Case
No. Q-10343 is a suit for specific performance which asks for the
payment of the balance and the liquidated damages and foreclosure
of the mortgage. The causes of action and the reliefs sought are
entirely different. A decision in the first will not amount to res
judicata against the second case for whether or not defendants
prevail in the former, petitioner's right to the unpaid balance and
the foreclosure of the mortgage would still be litigable. prcdTo
the mind of this Court, if any case should be dismissed at all, it
should be Civil Case No. Q-10313. That this case was filed ahead of
the other is of no moment for, as this Court held in Teodoro vs.
Mirasol: 19 "It is to be noted that the Rules do not require as a
ground for dismissal of a complaint that there is a prior pending
action. They provide that there is a pending action, not a pending
prior action. The fact that the unlawful detainer suit was of a
later date is no bar to the dismissal of the present
action."Plaintiff then had all the right to file the motion to
dismiss Civil Case No. Q-10313. Unfortunately, however, while she
actually filed such a motion, she failed to invoke lis pendens; she
merely raised: (a) unenforceability of the demands under the
statute of frauds and (b) lack of cause of action 20 as grounds for
the motion. Thus, the same was denied by the trial court on 7
December 1966. 21 The trial court, therefore, committed an error in
dismissing Civil Case No. Q-10343. What it should have done was to
order its consolidation, for joint hearing and trial, with Civil
Case No. Q-10313 pursuant to Section 1, Rule 31 of the Rules of
Court. As ruled by this Court in Ramos vs. Ebarle: 22 ". . . And,
whatever difficulties or inconvenience may be entailed if both
causes of action are pursued on separate remedies, the proper
solution is not the dismissal order of the trial court. The
possible consolidation of said cases, as well as stipulations and
appropriate modes of discovery, may well be considered by the court
below to subserve not only procedural expedience but, more
important, the ends of justice."WHEREFORE, judgment is hereby
rendered REVERSING and SETTING ASIDE the challenged Orders of 7
January 1967 and 26 September 1967 in Civil Case No. Q-10343;
REINSTATING said case; and ORDERING that it be jointly heard and
tried with Civil Case No. Q-10313, if that would still be
feasible.Costs against defendants-appellees.SO ORDERED.Gutierrez,
Jr., Feliciano, Bidin and Romero, JJ., concur.
SECOND DIVISION[G.R. No. L-39047. April 30, 1985.]ALBERTO
PASCUA, CRISPINA PASCUA, SOTERA PASCUA, and EDUARDO MOLINA,
petitioners, vs. HON. ALFREDO C. FLORENDO, CFI of Cagayan, CLEMENTE
CASTRO, and JULIANA O. CASTRO, respondents.Hermenigildo G. Rapanan
for petitioner.SYLLABUS1.REMEDIAL LAW; CIVIL PROCEDURE; PREVIOUS
DENIAL OF MOTION TO DISMISS; TRIAL COURT NOT ESTOPPED FROM PASSING
UPON ISSUE OF PRESCRIPTION. The trial court denied the motion to
dismiss because the grounds relied upon by the respondents for
their motion did not appear on the face of the complaint. There was
no finding that the allegation of prescription had no merit. It
cannot be said, therefore, that the trial court was already stopped
from passing upon the issue of prescription. The issue was not
adjudicated on its merits and the doctrine of res judicata had not
set in yet.2.ID.; ID.; ACTION; BARRED BY STATUTE OF LIMITATIONS;
CASE AT BAR. We likewise find the petitioners' contention, that
they came to know of the deed of sale by Martin Pascua in favor of
the respondents only in 1973, highly improbable. As the trial court
correctly observed, it is inconceivable that the petitioners did
not come to know about the purchase by the respondents of the
property from Martin Pascua. They admitted that they have been
neighbors of the respondents since before the war or for a period
of about 30 years and that the latter had deprived them of the
fruits of the land in question for more than 20 years. Alberto
Pascua, one of the petitioners testified that his parents from whom
they inherited the property died more than 25 years ago yet the
children never exerted any effort to have the property partitioned.
This fact indicates that petitioners had knowledge of the sale,
which explains why they had no interest at all in any project of
partition. More important is the fact that after the respondents
purchased the land they worked to secure an Original Certificate of
Title on the basis of a free patent application. This was way back
in 1958, 15 years before the petitioners decided to file the action
below. Clearly, the petitioners' action is now barred by the
statute of limitations.3.CIVIL LAW; ACTION FOR RELIEF BASED ON
FRAUD; ACTION BROUGHT WITHIN FOUR YEARS FROM DISCOVERY OF FRAUD.
Even if we add the lower court's finding that there was fraud on
the part of Martin Pascua when he effected the sale of the disputed
lot in favor of the respondents, the petitioners are still barred
from recovering the lot because their action should have been filed
within four (4) years from their discovery of the fraud, which in
turn, is deemed at the latest to have taken place in 1958, when the
respondents were issued an original certificate of title.4.REMEDIAL
LAW; CIVIL PROCEDURE; JUDGMENT BY DEFAULT PREVAILING PARTY NOT
AUTOMATICALLY ENTITLED TO RELIEF; CASE AT BAR. Nowhere in the
aforequoted provision nor in the summons issued by the respondent
court is it stated that the petitioners are automatically entitled
to the relief prayed for, once the respondents are declared in
default. Favorable relief can be granted only after the court has
ascertained that the evidence offered and the facts proven by the
presenting party, petitioners in this case, warrant the grant of
the same. Otherwise, it would be meaningless to require
presentation of evidence if everytime the other party is declared
in default, a decision would automatically be rendered in favor of
the non-defaulting party and exactly according to the tenor of his
prayer. This is not contemplated by the Rules nor is it sanctioned
by the due process clause. In the instant case, from the evidence
presented ex-parte by the petitioners and from their very own
allegations, the only judgment that is warranted is the dismissal
of the complaint. It is barred by the statute of limitations.D E C
I S I O NGUTIERREZ, JR., J p:This is a petition for review on
certiorari, seeking to annul the decision of the Court of First
Instance of Cagayan which dismissed the petitioners' action for
reconveyance with damages on the ground that the period within
which to file the same had already prescribed.Petitioners, as
plaintiffs, filed a complaint for reconveyance with damages against
the private respondents, spouses Clemente and Juliana Castro. The
latter, as defendants, in lieu of filing an answer, filed a motion
to dismiss the complaint on the grounds that the complaint states
no cause of action and that the same is already barred by the
statute of limitations.The trial court denied the respondents'
motion after finding that the grounds relied upon by them did not
appear on the face of the complaint. The court subsequently
declared the respondents in default for their having failed to file
an answer within the reglementary period. Thus, the petitioners
proceeded to present their evidence ex-parte.After receiving the
petitioners' evidence, the trial court made the following
findings:"From the evidence adduced during the presentation of
evidence by plaintiffs, it was shown that Alberto Pascua is one of
the plaintiffs, in this case; that he knows his co-plaintiffs
Crispina, Sotera, surnamed Pascua, and Eduardo Molina, the first
two being his sisters while the last is his nephew being the son of
his sister Alejandra; that his father is Jordan Pascua while his
mother is Magdalena Dumadag; that both his parents are already dead
(Exhibits A, B, and C); that Alejandra Pascua is also dead; that
during the lifetime of Jordan and Magdalena Dumadag, they begot
five children, namely Alberto, Alejandra, Crispina, Martin and
Sotera; that Jordan Pascua and Magdalena Dumadag acquired a parcel
of land located at Dacalafugo, Camalaniugan, Cagayan, consisting of
1.02.20 hectares and described in paragraph 3 of the complaint;
that lately they came to know that their brother Martin Pascua sold
the property to Clemente Castro, a resident of Camalaniugan,
Cagayan; that when they went to complain to the Agrarian office in
Tuguegarao, Clemente Castro showed them the deed of sale which they
xerox copied (Exhibit D); that the signature Alberto Pascua
appearing in Exhibit D is not his signature; that the genuine
signature of Alberto Pascua appears in Exhibit E; that he and his
co- plaintiffs did not give consent to the sale of the land subject
matter of this case; that the signature Sotera Pascua, appearing in
Exhibit D is not also the signature of Sotera Pascua; that he and
his co-plaintiffs did not appear before the Notary Public; that the
land subject matter of this case was never given to Martin Pascua
by their deceased father; that Martin Pascua is already dead; that
the land is now titled in the name of the defendant Juliana O.
Castro (Exhibits F and F-1) while the deed of sale was executed in
favor of Clemente Castro (Exhibit D); that the land is declared for
taxation purposes under Tax Declaration No. 157 (Exhibit G) in the
name of Juliana Castro; that plaintiffs and the defendants have
been neighbors since before the war and defendants know that the
land sold to them and subject matter of this suit was inherited by
the plaintiffs from their deceased father; that they (plaintiffs)
have been deprived of the fruits of the land for more than 20
years; that the land yields from thirty to forty sacks of palay
valued at P30.00 each; and that plaintiffs agreed to pay their
counsel the amount of P1,200.00 out of which they have already paid
P200.00."From. Exhibit D of the plaintiffs, it appears that the
deed of sale was executed in favor of the defendant Clemente Castro
married to Juliana Orteza by Martirs Pascua on May 8, 1951. Alberto
Pascua and Sotera Pascua testified that lately they came to know
that this land was conveyed by Martin Pascua to the defendants and
that said defendants have been in possession of the land in
question for more than 20 years. They testified further, however,
that they have been deprived of the fruits of the land for more
than twenty years. If such is the case, it is clear that the
defendants have entered and occupied the property for more than
twenty years and it is inconceivable that the plaintiffs did not
come to know that the defendants bought the property from their
brother Martin Pascua when they admitted that they have suffered
damages by virtue of the dispossession for more than twenty years.
The conclusion is obvious that the plaintiffs had knowledge of the
transaction made by their brother about twenty years ago."From the
evidence of the plaintiffs, the Court finds that there was really
fraud committed by Martin Pascua in selling the entire property
which said Martin Pascua and plaintiffs inherited from their
parents thus excluding the shares of the plaintiffs. Certainly,
Martin Pascua could only sell one-fifth of the property and that
the four-fifths were fraudulently conveyed by him. It is clear that
there was fraud on the part of Martin Pascua in selling the shares
of his brother and sisters. The action for relief on the ground of
fraud, however, may be brought only within four years from the
discovery of the fraud. (Article 1391, New Civil Code; Section 43
(c) Act 190).xxx xxx xxx"In view of the fact that the deed of sale
was executed on May 8, 1951, or over twenty years before the filing
of the complaint on May 31, 1973, it is hard to believe that
plaintiffs did not come to know of this deed of sale executed by
their brother. The Court, therefore, comes to the inevitable
conclusion that this action, having been filed 22 years after the
execution of the deed of sale, has long prescribed."Not satisfied
with the trial court's decision, petitioners elevated the case to
this Court through this petition. The petitioners ask us to examine
the following alleged errors of the respondent court: LLjur1.THE
TRIAL COURT ERRED IN DISMISSING THE CASE ON GROUND OF PRESCRIPTION
ALTHOUGH IT HAS PREVIOUSLY DENIED A MOTION TO DISMISS BASED ON THE
SAME GROUND.2.THE TRIAL COURT ERRED IN NOT GRANTING RELIEF TO
PLAINTIFFS ALTHOUGH THE DEFENDANTS WERE DECLARED IN DEFAULT.The
petitioners contend that the trial court acted with grave abuse of
discretion when, after hearing their evidence presented ex-parte,
the respondents having been declared in default, it dismissed the
case on the ground that the action had already prescribed. When the
same ground was earlier raised, the court denied the motion to
dismiss filed by the respondents. The petitioners argue that
because of its denying the motion to dismiss, the trial court is
stopped from dismissing the case on the same ground. Petitioners
further contend that the court's conclusion that they had knowledge
of the sale executed by their deceased brother, Martin Pascua about
twenty years ago is based merely on surmises and conjectures
because, in reality, it was only in 1973 when they came to learn of
the deed of sale executed by their deceased brother in 1951. In
1973, the deed was shown to them by respondent Clemente Castro at
the Agrarian office. Therefore, the period of prescription should
be counted from the knowledge of the petitioners of the deed of
sale and not from the date it was executed. LLprPetitioners'
contention are without merit.The trial court denied the motion to
dismiss because the grounds relied upon by the respondents for
their motion did not appear on the face of the complaint. There was
no finding that the allegation of prescription had no merit. It
cannot be said, therefore, that the trial court was already stopped
from passing upon the issue of prescription. The issue was not
adjudicated on its merits and the doctrine of res judicata had not
set in yet.We likewise find the petitioners' contention, that they
came to know of the deed of sale by Martin Pascua in favor of the
respondents only in 1973, highly improbable. As the trial court
correctly observed, it is inconceivable that the petitioners did
not come to know about the purchase by the respondents of the
property from Martin Pascua. They admitted that they have been
neighbors of the respondents since before the war or for a period
of about 30 years and that the latter had deprived them of the
fruits of the land in question for more than 20 years. Alberto
Pascua, one of the petitioners testified that his parents from whom
they inherited the property died more than 25 years ago yet the
children never exerted any effort to have the property partitioned.
This fact indicates that petitioners had knowledge of the sale,
which explains why they had no interest at all in any project of
partition. More important is the fact that after the respondents
purchased the land they worked to secure an Original Certificate of
Title on the basis of a free patent application. This was way back
in 1958, 15 years before the petitioners decided to file the action
below. Clearly, the petitioners' action is now barred by the
statute of limitations.In the case of Iglesia ni Cristo v. Hon.
Judge, Court of First Instance of Nueva Ecija, Br. I (123 SCRA
523), quoting the case of Labora v. Dayang-hirang (37 SCRA 346), we
ruled:"The rule in this jurisdiction, regarding public patents and
the character of the certificate of title that may be issued by
virtue thereof, is that where land is granted by the government to
a private individual, the corresponding patent therefor, is
recorded and the certificate of title is issued to the grantee;
thereafter, the land is automatically brought within the operation
of the Land Registration Act, the title issued to the grantee
becoming entitled to all the safeguards provided in Section 38 of
said Act. In other words, upon the expiration of one year from its
issuance, the certificate of title becomes irrevocable and
indefeasible like a certificate issued in a registration
proceeding."It is quite obvious, therefore, that the respondents'
title has already become indefeasible and irrevocable, the one-year
period provided by law having expired in 1959.Moreover, even if we
add the lower court's finding that there was fraud on the part of
Martin Pascua when he effected the sale of the disputed lot in
favor of the respondents, the petitioners are still barred from
recovering the lot because their action should have been filed
within four (4) years from their discovery of the fraud, which in
turn, is deemed at the latest to have taken place in 1958, when the
respondents were issued an original certificate of title. This was
our ruling in the case of Balbin v. Medalla (108 SCRA 666) where we
stated: llcd"An action for reconveyance of real property resulting
from fraud may be barred by the statute of limitations, which
requires that the action shall be filed within four (4) years from
the discovery of the fraud. Such discovery is deemed to have taken
place when the petitioners herein were issued original certificates
of title through either homestead or free patent grants, for the
registration of said patents constitutes constructive notice to the
whole world. (Gerona v. de Guzman, 11 SCRA 153, and cited cases
thereof)."In the case at bar, the latest patent war issued on
October 14, 1959. There is, therefore, merit in petitioners's
contention that if any action for reconveyance should be commenced,
the same should be filed on or before October 14, 1963. But private
respondents' complaint for reconveyance and annulment of titles
with damages was filed only on August 30, 1973 or more than 14
years had already elapsed from the date of the issuance of the
respective titles of the defendants. Consequently, the action for
reconveyance of land titled in the names of defendants (petitioners
herein) had already prescribed."The petitioners raise as a second
issue that the respondent court had no alternative but to grant the
relief prayed for in their complaint as this was evident in the
tenor of the summons issued by said court which in part stated:". .
. if you fail to appear within the time aforesaid, the plaintiff
will take judgment against you by default and demand from this
Court the relief applied for in said complaint . . ."Petitioners
also anchor their contention on Rule 18, Section 1 of the Rules of
Court which provides:"Judgment by default. If the defendant fails
to answer within the time specified in these roles, the court
shall, upon motion of the plaintiff and proof of such failure,
declare the defendant in default. Thereupon the court shall proceed
to receive the plaintiff's evidence and render judgment granting
him such relief as the complaint and the facts proven may warrant.
This provision applies where no answer is made to a counter-claim,
cross-claim or third-party complaint within the period provided in
this Rule."Nowhere in the aforequoted provision nor in the summons
issued by the respondent court is it stated that the petitioners
are automatically entitled to the relief prayed for, once the
respondents are declared in default.Favorable relief can be granted
only after the court has ascertained that the evidence offered and
the facts proven by the presenting party, petitioners in this case,
warrant the grant of the same. Otherwise, it would be meaningless
to require presentation of evidence if everytime the other party is
declared in default, a decision would automatically be rendered in
favor of the non-defaulting party and exactly according to the
tenor of his prayer. This is not contemplated by the Rules nor is
it sanctioned by the due process clause. prLLIn the case of Lim
Tanhu v. Ramolete (66 SCRA 452-453), we had occasion to elaborate
on this point. We ruled:"The Rules of Court contain a separate rule
on the subject of default, Rule 18. But said rule is concerned
solely with default resulting from failure of the defendant or
defendants to answer within the reglementary period. Referring to
the simplest form of default, that is, where there is only one
defendant in the action and he fails to answer on time, Section l
of the rule provides that upon 'proof of such failure, (the court
shall) declare the defendant in default. Thereupon the court shall
proceed to receive the plaintiff's evidence and render judgment
granting him such relief as the complaint and the facts proven may
warrant.' This last clause is clarified by Section 5 which says
that 'a judgment entered against a party in default shall not
exceed the amount or be different in kind from that prayed
for.'"Unequivocal, in the literal sense, as these provisions are,
they do not readily convey the full import of what they
contemplate. To begin with, contrary to the immediate notion that
can be drawn from their language, these provisions are not to be
understood as meaning that default or the failure of the defendant
to answer should be 'interpreted as an admission by the said
defendant that the plaintiff's cause of action find support in the
law or that plaintiff is entitled to the relief prayed for.'
(Moran, supra, p. 535 citing Macondray & Co. v. Eustaquio, 64
Phil. 466. citing with approval Chaffin v. Mc Fadden, 41 Ark. 42;
Johnson v. Pierce, 12 Ark. 599; Mayden v. Johnson, 59 Ga. 105;
People v. Rust, 292 Ill. 328; Ken v. Leopold, 21 Ill. A. 163;
Chicago, etc. Electric R. Co. v. Krempel, 116 Ill. A. 253.)xxx xxx
xxx"In other words, a defaulted defendant is not actually thrown
out of court. While in a sense it may be said that by defaulting he
leaves himself at the mercy of the court, the rules see to it that
any judgment against him must be in accordance with law. The
evidence to support the plaintiffs cause is, of course, presented
in his absence, but the court is not supposed to admit that which
is basically incompetent. Although the defendant would not be in a
position to object, elementary justice requires that only legal
evidence should be considered against him. If the evidence
presented should not be sufficient to justify a judgment for the
plaintiff, the complaint must be dismissed. And if an unfavorable
judgment should be justifiable, it cannot exceed in amount or be
different in kind from what is prayed for in the complaint."In the
instant case, from the evidence presented ex-parte by the
petitioners and from their very own allegations, the only judgment
that is warranted is the dismissal of the complaint. It is barred
by the statute of limitations.WHEREFORE, the petition is hereby
DISMISSED for lack of merit. No costs.SO ORDERED.Teehankee
(Chairman), Melencio-Herrera, Plana, Relova, De la Fuente and
Alampay, JJ., concur.
SECOND DIVISION[G.R. No. L-49833. February 15, 1990.]JUANITO
RAMOS, SALVADOR RAMOS, ESPERIDION RAMOS, LYDIA RAMOS and AGAPITA
VDA. DE RAMOS, petitioners, vs. HON. BIENVENIDO A. EBARLE, Judge,
Court of First Instance of Misamis Occidental, Branch II, and
SPOUSES BERTOLO HINOG and DELA PAZ CORTES, respondents.Dominador B.
Borje for petitioners.Jorge C. Paderanga for private
respondents.SYLLABUS1.REMEDIAL LAW; CIVIL PROCEDURE; JUDGMENT;
LITIS PENDENTIA, REQUISITES. Under the rules and jurisprudence, for
litis pendentia to be invoked as a ground for the dismissal of an
action, the concurrence of the following requisites is necessary:
(a) Identity of parties or at least such as represent the same
interest in both actions; (b) Identity of rights asserted and
relief prayed for, the relief being founded on the same facts; and
(c) The identity in the two cases should be such that the judgment
that may be rendered in one would, regardless of which party is
successful, amount to res judicata in the other.2.ID.; ID.; ID.;
ID.; NO LITIS PENDENTIA IN CASE AT BAR. The rights asserted in each
of the cases involved are separate and distinct; there are two
subjects of controversy presented for adjudication. Also, two
causes of action are clearly involved. Civil Case No. OZ 642 is for
annulment of an instrument and recovery of possession and ownership
of the one-half (1/2) share of the widow in the conjugal
partnership properties. The alienation and transfer thereof to
private respondents without the knowledge and consent of said widow
is the actionable wrong. This cause of action properly pertains to
the widow, Agapita Manisan, who is the real aggrieved party and,
therefore, the real party in interest. Thus, the participation of
the other petitioners in the case in that particular regard is not
even necessary and they should not have been impleaded therein. On
other hand, the real parties in interest in the second action,
Civil Case No. OZ 731, not only include the widow but all the heirs
of Manuel Ramos. The case is anchored on the alleged fraudulent
acts employed by private respondents in securing Transfer
Certificate of Title No. 300 although the deed purporting to be a
sale was actually intended only as a mortgage. Necessarily, the
real parties in interest and the cause of action are not the same.
Furthermore, the subject matter affected by said cause of action is
the entire deed and, consequently, the entire parcel of land and
not merely a part or half thereof.3.ID.; ID.; ID.; ID.; WHILE A
DECISION IN ONE CASE MAY AFFECT THE OTHER CASE IDENTITY OR
DISCRETENESS OF THE CAUSES OF ACTION IS NOT DETERMINED BY IT. It
necessarily follows from the above disquisition that the third
requisite for litis pendentia is also not present. There being
different causes of action, the decision in one case will not
constitute res judicata as to the other. Thus, a finding that there
was no fraud in executing a deed of sale instead of a mortgage will
not be res judicata as to the question of whether or not the widow
consented to or participated in the transaction. Of course, a
decision in one case may, to a certain extent, affect the other
case as they involve the same parcel of land. This, however, is not
the test to determine the identity or discreteness of the causes of
action.4.ID.; ID.; ID.; ID.; ID.; DIFFICULTIES OR INCONVENIENCE IN
PURSUING CAUSES OF ACTION BY SEPARATE REMEDIES DO NOT JUSTIFY
DISMISSAL. Whatever difficulties or inconvenience may be
entailed