civil cases february 2015.docx

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Civil cases February 2015

FIRST DIVISION

G.R. No. 187930 February 23, 2015

NEW WORLD DEVELOPERS AND ANAGEEN!, "N#.,Petitioner,vsAA #OP$!ER LEARN"NG #EN!ER, "N#.,Res!on"ent

# $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ #

G.R. No. 188250

AA #OP$!ER LEARN"NG #EN!ER, "N#.,PetitionervsNEW WORLD DEVELOPERS AND ANAGEEN!, "N#.,Res!on"ent,

D % C I S I O N

SERENO, CJ:

&e'ore us are consoli"ate" Petitions 'or Revie( on Certiorari un"er Rule )5 o' t*e Rules o'Court assailin+ t*e Court o' !!eals -C. Decision1"ate" 22 /anuary 200 an" Resolution2

"ate" 1 ay 200 in C$3R CV No )4

T*e C Decision or"ere" Co!uter 6earnin+ Center, Inc -. to !ay Ne( 7orl"

Develo!ers an" ana+eent, Inc -Ne( 7orl". un!ai" rentals 'or 2 ont*s, as (ell asli8ui"ate""aa+es e8uivalent to ) ont*s9 rent T*e C Resolution "enie" t*e se!arate otions 'or

reconsi"eration 'ile" by t*e !arties

FCTS

Ne( 7orl" is t*e o(ner o' a coercial buil"in+ locate" at No 110)$111 %s!a:a corner

Pare"es Streets, Sa!aloc, anila4In 1, a+ree" to lease t*e entire secon" 'loor o' t*e

buil"in+ 'or its co!uter learnin+ center, an" t*e !arties entere" into a Contract o' 6ease)coverin+ t*e ei+*t$year !erio" 'ro 15 /une 1 to 1) arc* 200;

T*e ont*ly rental 'or t*e 'irst year (as set at P11,500, (it* an annual escalation rate

e8uivalent to 15< 'or t*e succee"in+ years5It (as also !rovi"e" t*at ay !reterinatet*e contract by sen"in+ notice in (ritin+ to Ne( 7orl" at least si# ont*s be'ore t*e inten"e"

"ate;In case o' !reterination, s*all be liable 'or li8ui"ate" "aa+es in an aount

e8uivalent to si# ont*s o' t*e !revailin+ rent
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In co!liance (it* t*e contract, !ai" Ne( 7orl" t*e aount o' P)50,000 as a"vance

rental an" anot*er P)50,000 as security "e!osit=

For t*e 'irst t*ree years, !ai" t*e ont*ly rent as sti!ulate" in t*e contract, (it* t*ere8uire" a">ustent in accor"ance (it* t*e escalation rate 'or t*e secon" an" t*e t*ir" years

In a letter "ate" 1 arc* 2002, re8ueste" t*e "e'erent o' t*e annual increase in t*e

ont*ly rent by citin+ 'inancial constraints brou+*t about by a "ecrease in its enrollent Ne(

7orl" a+ree" to re"uce t*e escalation rate by 50< 'or t*e ne#t si# ont*s T*e 'ollo(in+ year, a+ain re8ueste" t*e a">ustent o' t*e ont*ly rent an" Ne( 7orl" obli+e" by +rantin+ a

)5< re"uction o' t*e ont*ly rent an" a 5< re"uction o' t*e escalation rate 'or t*e reainin+

ter o' t*e lease For t*is !ur!ose, t*e !arties entere" into an ""en"u to t*e Contract o'6ease

On t*e evenin+ o' ; /uly 200), reove" all its o''ice e8ui!ent an" 'urniture 'ro t*e

lease" !reises T*e 'ollo(in+ "ay, Ne( 7orl" receive" a letter 'ro "ate" ; /uly 200)10

statin+ t*at t*e 'orer *a" "eci"e" to !reterinate t*e contract e''ective ie"iately on t*e+roun" o' business losses "ue to a "rastic "ecline in enrollent also "ean"e" t*e re'un"

o' its a"vance rental an" security "e!osit

Ne( 7orl" re!lie" in a letter "ate" 12 /uly 200),11to (*ic* (as attac*e" a Stateent o'

ccount12in"icatin+ t*e 'ollo(in+ aounts to be !ai" by ? 1. un!ai" t(o ont*s9 rent int*e aount o' P);;,;20@ 2. 4< ont*ly interest 'or t*e un!ai" rent in t*e aount o' P;=,)2;5@

4. li8ui"ate" "aa+es e8uivalent to si# ont*s o' t*e !revailin+ rent in t*e aount o'

P1,4,;0@ an" ). "aa+e to t*e lease" !reises aountin+ to P15,50 T*e "e"uction o' t*ea"vance rental an" security "e!osit !ai" by still le't an un!ai" balance in t*e aount o'

P1,0),);5

Des!ite t*e eetin+s bet(een t*e !arties, t*ey 'aile" to arrive at a settleent re+ar"in+ t*e

!ayent o' t*e 'ore+oin+ aounts14

On 2= October 200), Ne( 7orl" 'ile" a co!laint 'or a su o' oney an" "aa+es a+ainst be'ore t*e Re+ional Trial Court o' ariAina City, &ranc* 15; -RTC.1)

RB6IN3 OF T% RTC

In a Decision15"ate" 41 /anuary 200=, t*e RTC or"ere" to !ay Ne( 7orl" P);;,;20 as

un!ai" rentals !lus 4< ont*ly !enalty interest until !ayent@ P1,4,;0 as li8ui"ate"

"aa+es e8uivalent to si# ont*s9 rent, (it* t*e a"vance rental an" security "e!osit !ai" by to be "e"ucte" t*ere'ro@ P15,50 'or t*e "aa+e to t*e lease" !reises@ P100,000 as

attorney9s 'ees@ an" costs o' t*e suit

ccor"in+ to t*e RTC, never "enie" t*at it *a" arreara+es e8uivalent to t(o ont*s9 rentOt*er t*an its alle+ation t*at it "i" not !artici!ate in t*e !re!aration o' t*e Stateent o' ccount,

"i" not !ro''er any evi"ence "is!utin+ t*e un!ai" rent For its !art, Ne( 7orl" clearly

e#!laine" t*e e#istence o' t*e arrears
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7*ile sy!at*iin+ (it* in vie( o' its business losses, t*e RTC rule" t*at coul" not

s*irA 'ro its contractual obli+ations, (*ic* !rovi"e" t*at it *a" to !ay li8ui"ate" "aa+es

e8uivalent to si# ont*s9 rent in case o' a !reterination o' t*e lease

T*e RTC !rovi"e" no bases 'or a(ar"in+ P15,50 'or t*e "aa+e to t*e lease" !reises an"

P100,000 'or attorney9s 'ees, (*ile "enyin+ t*e !rayer 'or e#e!lary an" oral "aa+es

B!on t*e "enial o' its otion 'or reconsi"eration, 'ile" an a!!eal be'ore t*e C1;

RB6IN3 OF T% C

In t*e assaile" Decision "ate" 22 /anuary 200, t*e C or"ere" to !ay Ne( 7orl"P);;,;20 'or un!ai" rentals an" P44,2)0 'or li8ui"ate" "aa+es e8uivalent to 'our ont*s9

rent, (it* t*e a"vance rental an" security "e!osit !ai" by to be "e"ucte" t*ere'ro1=

T*e a!!ellate court rule" t*at t*e RTC erre" in i!osin+ a 4< ont*ly !enalty interest on t*e

un!ai" rent, because t*ere (as no sti!ulation eit*er in t*e Contract o' 6ease or in t*e ""en"uto t*e Contract o' 6ease concernin+ t*e i!osition o' interest in t*e event o' a "elay in t*e

!ayent o' t*e rent1T*us, t*e C rule" t*at t*e rent in arrears s*oul" earn interest at t*e rate

o' ;< !er annu only, recAone" 'ro t*e "ate o' t*e e#tra>u"icial "ean" on 12 /uly 200) untilt*e 'inality o' t*e Decision T*erea'ter, interest at t*e rate o'12< !er annu s*all be i!ose"

until 'ull !ayent

T*e C also rule" t*at t*e RTC9s i!osition o' li8ui"ate" "aa+es e8uivalent to si# ont*s9

rent (as ini8uitous17*ile conce"in+ t*at (as liable 'or li8ui"ate" "aa+es 'or!reterinatin+ t*e lease, t*e C also reco+nie" t*at sti!ulate" !enalties ay be e8uitably

re"uce" by t*e courts base" on its soun" "iscretion Consi"erin+ t*at t*e une#!ire" !ortion o' t*e

ter o' lease (as alrea"y less t*an t(o years, an" t*at *a" su''ere" business lossesren"erin+ it inca!able o' !ayin+ 'or its e#!enses, t*e C "eee" t*at li8ui"ate" "aa+ese8uivalent to 'our ont*s9 rent (as reasonable20

T*e a!!ellate court "elete" t*e a(ar" 'or t*e "aa+e to t*e lease" !reises, because no !roo'

ot*er t*an t*e Stateent o' ccount (as !resente" by Ne( 7orl"21Furt*erore, notin+ t*att*e latter (as alrea"y entitle" to li8ui"ate" "aa+es, an" t*at t*e trial court "i" not +ive any

>usti'ication 'or attorney9s 'ees, t*e C "isallo(e" t*e a(ar" t*ereo'22

&ot* !arties 'ile" t*eir res!ective otions 'or reconsi"eration, (*ic* (ere "enie" in t*e assaile"

Resolution "ate" 10 ay 200

ence, t*e !resent !etitions 'or revie( on certiorari On 4 u+ust 200, t*e Court resolve" toconsoli"ate t*e !etitions, consi"erin+ t*at t*ey involve t*e sae !arties an" assail t*e sae C

Decision an" Resolution24

PRTI%S9 POSITIONS
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ccor"in+ to Ne( 7orl", (*en !arties 'reely sti!ulate on t*e anner by (*ic* one ay

!reterinate t*e lease, t*at sti!ulation *as t*e 'orce o' la( bet(een t*e an" s*oul" be co!lie"

(it* in +oo" 'ait*2)Since !reterinate" t*e lease, it becae liable to li8ui"ate" "aa+ese8uivalent to si# ont*s9 rent Furt*erore, its 'ailure to +ive notice to Ne( 7orl" si# ont*s

!rior to t*e inten"e" !reterination o' t*e contract an" its leavin+ t*e lease" !reises in t*e

i""le o' t*e ni+*t, (it* all its o''ice e8ui!ent an" 'urniture, sacAe" o' +ross ba" 'ait* t*atren"ers it un"eservin+ o' sy!at*y 'ro t*e courts25T*us, t*e C erre" in re"ucin+ t*e

li8ui"ate" "aa+es 'ro an aount e8uivalent to si# ont*s9 rent to only 'our ont*s

Ne( 7orl" also c*allen+es t*e C Decision an" Resolution 'or "isallo(in+ t*e i!osition o' t*e

4< ont*ly interest on t*e un!ai" rentals It is ar+ue" t*at never "is!ute" t*e i!ositiono' t*e 4< ont*ly interest@ rat*er, it only re8ueste" t*at t*e interest rate be re"uce"2;

On t*e ot*er *an", assails t*e C rulin+ 'or not reco+niin+ t*e 'act t*at co!ensation

tooA !lace bet(een t*e un!ai" rentals an" t*e a"vance rental !ai" by 2=Consi"erin+ t*at

t*e obli+ation o' as to t*e arrears *as been e#tin+uis*e" by o!eration o' la(, t*ere (oul"

be no occasion 'or t*e i!osition o' interest2

also !rays 'or t*e 'urt*er re"uction o' t*e li8ui"ate" "aa+es to an aount e8uivalent to

one ont*9s rent u! to one an" a *al' ont*s, ar+uin+ t*at 'our ont*s9 (ort* o' rent is still

ini8uitous on account o' t*e severe 'inancial losses it su''ere"2

ISSB%S

1 7*et*er is liable to !ay si# ont*s9 (ort* o' rent as li8ui"ate" "aa+es

2 7*et*er reaine" liable 'or t*e rental arrears

OBR RB6IN3

I

is liable 'or si# ont*s9 (ort* o' rent as li8ui"ate" "aa+es

Ite No 1) o' t*e Contract o' 6ease states?

T*at E ay !re$terinate t*is Contract o' 6ease by notice in (ritin+ to ENe( 7orl" at

least si# -;. ont*s be'ore t*e inten"e" "ate o' !reterination, !rovi"e", *o(ever, t*at in suc*

case, E s*all be liable to ENe( 7orl" 'or an aount e8uivalent to si# -;. ont*s currentrental as li8ui"ate" "aa+es@40

Guite notable is t*e 'act t*at never "enie" its liability 'or t*e !ayent o' li8ui"ate"

"aa+es in vie( o' its !reterination o' t*e lease contract (it* Ne( 7orl" 7*at it clais,

*o(ever, is t*at it is entitle" to t*e re"uction o' t*e aount "ue to t*e serious business losses itsu''ere" as a result o' a "rastic "ecrease in its enrollent
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T*is Court is, 'irst an" 'oreost, one o' la( 7*ile (e are also a court o' e8uity, (e "o not

e!loy e8uitable !rinci!les (*en (ell$establis*e" "octrines an" !ositive !rovisions o' t*e la(

clearly a!!ly41

T*e la( "oes not relieve a !arty 'ro t*e conse8uences o' a contract it entere" into (it* all t*e

re8uire" 'oralities42Courts *ave no !o(er to ease t*e bur"en o' obli+ations voluntarilyassue" by !arties, >ust because t*in+s "i" not turn out as e#!ecte" at t*e ince!tion o' t*e

contract44It ust also be e!*asie" t*at is an entity t*at *as *a" si+ni'icant businesse#!erience, an" is not a ere babe in t*e (oo"s

rticles 115 an" 140; o' t*e Civil Co"e state?

rt 115 Obli+ations arisin+ 'ro contracts *ave t*e 'orce o' la( bet(een t*e contractin+

!arties an" s*oul" be co!lie" (it* in +oo" 'ait*

# # # #

rt 140; T*e contractin+ !arties ay establis* suc* sti!ulations, clauses, ters an" con"itions

as t*ey ay "ee convenient, !rovi"e" t*ey are not contrary to la(, orals, +oo" custos,

!ublic or"er, or !ublic !olicy

T*e 'un"aental rule is t*at a contract is t*e la( bet(een t*e !arties Bnless it *as been s*o(nt*at its !rovisions are (*olly or in !art contrary to la(, orals, +oo" custos, !ublic or"er, or

!ublic !olicy, t*e contract (ill be strictly en'orce" by t*e courts4)

In rebuttal, invoAes rticle 222= o' t*e Civil Co"e, to (it?

rt 222= 6i8ui"ate" "aa+es, (*et*er inten"e" as an in"enity or a !enalty, s*all be e8uitablyre"uce" i' t*ey are ini8uitous or unconscionable

In 6i+utan v C, (e *el" t*at t*e resolution o' t*e 8uestion o' (*et*er a !enalty is reasonable,

or ini8uitous or unconscionable (oul" "e!en" on 'actors inclu"in+ but not liite" to t*e ty!e,

e#tent an" !ur!ose o' t*e !enalty@ t*e nature o' t*e obli+ation@ t*e o"e o' t*e breac* an" itsconse8uences@ t*e su!ervenin+ realities@ an" t*e stan"in+ an" relations*i! o' t*e !arties45T*e

a!!reciation o' t*ese 'actors is essentially a""resse" to t*e soun" "iscretion o' t*e court4;

It is 8uite easy to un"erstan" t*e reason (*y a lessor (oul" i!ose li8ui"ate" "aa+es in t*e

event o' t*e !reterination o' a lease contract Preterination is e''ectively t*e breac* o' a

contract, t*at (as ori+inally inten"e" to cover an a+ree" u!on !erio" o' tie "e'inite !erio"assures t*e lessor a stea"y incoe 'or t*e "uration !reterination (oul" su""enly cut s*ort

(*at (oul" ot*er(ise *ave been a lon+er !ro'itable relations*i! lon+ t*e (ay, t*e lessor isboun" to incur losses until it is able to 'in" a ne( lessee, an" it is t*is loss o' incoe t*at is

sou+*t to be co!ensate" by t*e !ayent o' li8ui"ate" "aa+es

T*ere i+*t *ave been ot*er (ays to (orA aroun" its "i''icult 'inancial situation an" lessen t*e

i!act o' t*e !reterination to bot* !arties o(ever, o!te" to "o t*e 'ollo(in+?
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1 It !reterinate" t*e lease (it*out noti'yin+ Ne( 7orl" at least si# ont*s be'ore t*e

inten"e" "ate

2 It reove" all its o''ice e8ui!ent an" le't t*e !reises in t*e i""le o' t*e ni+*t

4 Only a'ter it *a" cleare" t*e !reises "i" it sen" Ne( 7orl" a notice o' !reterinatione''ective ie"iately

) It *a" t*e +all to "ean" a 'ull re'un" o' t*e a"vance rental an" security "e!osit, albeit

(it*out !re>u"ice to t*eir reoval o' t*e i!roveents intro"uce" in t*e !reises

7e cannot un"erstan" t*e inability o' to be 'ort*ri+*t (it* Ne( 7orl", consi"erin+ t*att*e 'orer *a" been trans!arent about its business losses in its !revious re8uests 'or t*e

re"uction o' t*e ont*ly rental T*e "rastic "ecrease in 9s enrollent *a" been un'ol"in+

since 2002 T*us, it cannot be sai" t*at t*e business losses *a" taAen it by sur!rise It is also

*i+*ly unliAely t*at t*e "ecision to !reterinate t*e lease contract (as a"e at t*e last inute

T*e cancellation o' classes, t*e trans'er o' stu"ents, an" a"inistrative !re!arations 'or t*eclosure o' t*e co!uter learnin+ center an" t*e reoval o' o''ice e8ui!ent t*ere'ro s*oul"

taAe at least (eeAs, i' not ont*s, o' lo+istic !lannin+ a" coe clean about t*ei!en"in+ !reterination, easures bene'icial to bot* !arties coul" *ave been arrive" at, an"

t*e instant cases (oul" not *ave reac*e" t*is Court Instea", 'orce" Ne( 7orl" to s*are in

t*e 'orer9s losses, causin+ t*e latter to scrable 'or ne( lessees (*ile t*e !reises reaine"untenante" an" un!ro"uctive

In t*e s!*ere o' !ersonal an" contractual relations +overne" by la(s, rules an" re+ulations

create" to !roote >ustice an" 'airness, e8uity is "eserve", not "ean"e" T*e a!!lication o'

e8uity necessitates a balancin+ o' t*e e8uities involve" in a case,4='or HE*e (*o seeAs e8uity

ust "o e8uity, an" *e (*o coes into e8uity ust coe (it* clean *an"sH4Persons in "irestraits are never >usti'ie" in tra!lin+ on ot*er !ersons9 ri+*ts 6iti+ants s*all be "enie" relie' i'

t*eir con"uct *as been ine8uitable, un'air an" "is*onest as to t*e controversy in issue4T*eactions o' sacA o' ba" 'ait*

7e cannot abi"e by t*e !rayer 'or t*e 'urt*er re"uction o' t*e li8ui"ate" "aa+es 7e 'in" t*at,

in vie( o' t*e surroun"in+ circustances, t*e C even erre" in re"ucin+ t*e li8ui"ate" "aa+es

to 'our ont*9s (ort* o' rent Bn"er t*e ters o' t*e contract, an" in li+*t o' t*e 'ailure o' to s*o( t*at it is "eservin+ o' t*is Court9s in"ul+ence, t*e !ayent o' li8ui"ate" "aa+es in an

aount e8uivalent to si# ont*s9 rent is !ro!er

lso !ro!er is an a(ar" o' e#e!lary "aa+es rticle 224) o' t*e Civil Co"e !rovi"es?

rt 224) 7*ile t*e aount o' t*e e#e!lary "aa+es nee" not be !rove", t*e !lainti'' ust

s*o( t*at *e is entitle" to oral, te!erate or co!ensatory "aa+es be'ore t*e court ayconsi"er t*e 8uestion o' (*et*er or not e#e!lary "aa+es s*oul" be a(ar"e" In case

li8ui"ate" "aa+es *ave been a+ree" u!on, alt*ou+* no !roo' o' loss is necessary in or"er t*at

suc* li8ui"ate" "aa+es ay be recovere", nevert*eless, be'ore t*e court ay consi"er t*e8uestion o' +rantin+ e#e!lary in a""ition to t*e li8ui"ate" "aa+es, t*e !lainti'' ust s*o(
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t*at *e (oul" be entitle" to oral, te!erate or co!ensatory "aa+es (ere it not 'or t*e

sti!ulation 'or li8ui"ate" "aa+es -%!*asis su!!lie".

In t*is case, it is 8uite clear t*at Ne( 7orl" sustaine" losses as a result o' t*e un(arrante" actso' Furt*er, (ere it not 'or t*e sti!ulation in t*e contract re+ar"in+ t*e !ayent o'

li8ui"ate" "aa+es, (e (oul" be a(ar"in+ co!ensatory "aa+es to Ne( 7orl"

H%#e!lary "aa+es are "esi+ne" by our civil la( to !erit t*e courts to res*a!e be*aviour t*at

is socially "eleterious in its conse8uence by creatin+ ne+ative incentives or "eterrents a+ainstsuc* be*aviourH)0s suc*, t*ey ay be a(ar"e" even (*en not !lea"e" or !raye" 'or)1In

or"er to !revent t*e coission o' a siilar act in t*e 'uture, s*all !ay Ne( 7orl"

e#e!lary "aa+es in t*e aount o' P100,000

II

9s liability 'or t*e rental arrears *as alrea"y been e#tin+uis*e"

assails t*e C rulin+ ainly 'or t*e i!osition o' le+al interest on t*e rent in arrears

ar+ues t*at t*e a"vance rental *as e#tin+uis*e" its obli+ation as to t*e arrears T*us, it

says, t*ere is no ore basis 'or t*e i!osition o' interest at t*e rate o' ;< !er annu 'ro t*e"ate o' e#tra>u"icial "ean" on 12 /uly 200) until t*e 'inality o' t*e Decision, !lus interest at t*e

rate o' 12< !er annu 'ro 'inality until 'ull !ayent

t t*is >uncture, it is necessary to looA into t*e contract to "eterine t*e !ur!ose o' t*e a"vance

rental an" security "e!osit

Ite Nos 2, 4 an" ) o' t*e Contract o' 6ease !rovi"e?

# # # #

2 T*at E s*all !ay to ENe( 7orl" in a"vance (it*in t*e 'irst 5 "ays o' eac*

calen"ar ont* a ont*ly rental in accor"ance (it* t*e 'ollo(in+ sc*e"ule 'or t*e entire

ter o' t*is Contract o' 6ease@

P%RIOD ONT6 R%NT6 RT%S

ear 1 /une 15, 1 J ar 1), 1 11,50000

ear 2 ar 15, 1 J ar 1), 2000 P20,=2500

ear 4 ar 15, 2000 J ar 1), 2001 P2)0,044=5

ear ) ar 15, 2001 J ar 1), 2002 P2=;,041

ear 5 ar 15, 2002 J ar 1), 2004 P41=,)));4

ear ; ar 15, 2004 J ar 1), 200) P4;5,0;144

ear = ar 15, 200) J ar 1), 2005 P)1,2054
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8/121

ear ar 15, 2005 J ar 1), 200; P)2,=4;1

-P)2,=4;1 J 4=,500 K

P))5,24;1.

T*e ont*ly rentals re'erre" to above (ere co!ute" at an escalation rate o' Fi'teenPercent -15


9/121

7e t*en a!!ly t*e a"vance rental o' P)50,000 to t*is aount to arrive at a total e#tin+uis*ent

o' t*e liability 'or t*e un!ai" rentals an" a !artial e#tin+uis*ent o' t*e liability 'or li8ui"ate"

"aa+es T*is s*all leave still liable to Ne( 7orl" in t*e aount o' P;;,)0 -P1,)1;,)0total liability less P)50,000 a"vance rental.

Not constitutin+ a 'orbearance o' oney,))t*is aount s*all earn interest !ursuant to IteII-2.)5o' our !ronounceent in %astern S*i!!in+ 6ines v C);T*is ite reaine" unc*an+e"

by t*e o"i'ication a"e in Nacar v 3allery Fraes)=Interest at t*e rate o' ;< !er annu is*ereby i!ose" on t*e aount o' ;;,)0 'ro t*e tie o' e#tra>u"icial "ean" on 12 /uly

200) until t*e 'inality o' t*is Decision

T*erea'ter J t*is tie !ursuant to t*e o"i'ication in NacarJ t*e aount "ue s*all earn interestat t*e rate o' ;< !er annu until satis'action, t*is interi !erio" bein+ "eee" to be by t*en

e8uivalent to a 'orbearance o' cre"it)

Consi"erin+ t*e 'ore+oin+, t*ere (as no occasion 'or t*e un!ai" t(o ont*s9 rental to earn

interest &esi"es, (e cannot sanction t*e i!osition o' 4< ont*ly !enalty interest t*ereon 7e8uote (it* a!!roval t*e rulin+ o' t*e C on t*is issue?

I' t*e obli+ation consists in t*e !ayent o' a su o' oney, an" t*e "ebtor incurs in "elay, t*e

in"enity 'or "aa+es, t*ere bein+ no sti!ulation to t*e contrary, s*all be t*e !ayent o' t*e

interest a+ree" u!on an" in t*e absence o' sti!ulation, t*e le+al interest, (*ic* is si# !er cent !erannu

In t*e instant case, t*e Contract o' 6ease an" t*e ""en"u to t*e Contract o' 6ease "o not

s!eci'y any interest in t*e event o' "elay o' !ayent o' rentals ccor"in+ly, t*ere bein+ no

sti!ulation concernin+ interest, t*e trial court erre" in i!osin+ 4< interest !er ont* on t*e

t(o$ont* un!ai" rentals

ENe( 7orl" ar+ues t*at t*e sai"4< interest !er ont* on t*e un!ai" rentals (as a+ree" u!on by

t*e !arties as alle+e"ly s*o(n in %#*ibits H$)H, H$5H, H$;H, H&$)H, an" H&$5H

7e are not !ersua"e"

ENe( 7orl"9s letter "ate" 12 /uly 200) to E, Stateent o' ccount "ate" 0= /uly 200)@an" anot*er Stateent o' ccount "ate" 2= October 200) (ere all !re!are" by ENe( 7orl",

(it* no !artici!ation or any in"ication o' a+reeent on E9s !art T*e alle+e" !ro!osal o'

E as containe" in t*e Sc*e"ule o' ReceivableLPayable is >ust a co!uter !rint$out an" "oes

not contain any si+nature s*o(in+ E9s con'ority to t*e sae)

avin+ relie" on t*e Contract o' 6ease 'or its "ean" 'or !ayent o' li8ui"ate" "aa+es, Ne(

7orl" s*oul" *ave also re'erre" to t*e contract to "eterine t*e !ro!er a!!lication o' t*e

a"vance rental an" security "e!osit a" it "one so in t*e 'irst instance, it (oul" *ave Ano(n t*att*ere is no occasion 'or t*e i!osition o' interest, 4< or ot*er(ise, on t*e un!ai" rentals

7%R%FOR%, t*e Court o' !!eals Decision "ate" 22 /anuary 200 an" Resolution "ate" 10

ay 200 in C$3R CV No )4 is FFIR%D (it* ODIFICTION


10/121

Co!uter 6earnin+ Center, Inc is or"ere" to !ay Ne( 7orl" Develo!ers an"

ana+eent, Inc t*e aount o' P;;,)0, (it* interest at t*e rate o' ;< !er annu 'ro 12

/uly 200) until 'ull !ayent

In a""ition, s*all !ay Ne( 7orl" e#e!lary "aa+es in t*e aount o' P100,000, (*ic*

s*all earn interest at t*e rate o' ;< !er annu 'ro t*e 'inality o' t*is Decision until 'ull!ayent

SO ORD%R%D

AR"A LO$RDES P.A. SERENOC*ie' /ustice, C*air!erson

7% CONCBR?

!ERES"!A %. LEONARDO&DE #AS!RO

ssociate /ustice

L$#AS P. 'ERSA"Nssociate /ustice

%OSE POR!$GAL PERE(ssociate /ustice

ES!ELA . PERLAS&'ERNA'Essociate /ustice

C % R T I F I C T I O N

Pursuant to Section 14, rticle VIII o' t*e Constitution, I certi'y t*at t*e conclusions in t*e above

Decision *a" been reac*e" in consultation be'ore t*e case (as assi+ne" to t*e (riter o' t*eo!inion o' t*e CourtMs Division

AR"A LO$RDES P.A. SERENOC*ie' /ustice

Foo)*o)e+

1Rollo -3R No 1=40., !! 42$) T*e Decision issue" by t*e Court o' !!eals

T(el't* Division (as !enne" by ssociate /ustice Celia C 6ibrea$6ea+o+o, (it*ssociate /ustices ariano C "e Castillo -no( a eber o' t*is Court. an" !olinarioD &ruselas, /r concurrin+

2I" at 51$54

4I" at 44
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11/121

)I" at 5)$5

5I" at 55

;I" at 5;

=I" at 4;, 55

I" at 4)

I" at 5$;0

10I" at ;2

11I" at ;)

12I" at ;4

14I" at 4)

1)I" at 44

15I" at ;5$;

1;I" at 4

1=I" at )5$);

1I" at )0

1I" at )4

20I" at )4$))

21I" at ))

22I" at )5

24I" at 10

2)I" at 1=

25I" at 1$21

2;I" at 2;
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12/121

2=Rollo -3R No 1250., !! 12$14

2I" at 14$1)

2I" at 11$1=

40Rollo -3R No 1=40., ! 5;

41+uila v CFI o' &atan+as, &r I, 2)4 P*il 505, 512 -1., in (*ic* t*e Court state"?

For all its conce"e" erits, e8uity is available only in t*e absence o' la( an" notas its re!laceent %8uity is "escribe" as >ustice outsi"e le+ality, (*ic* si!ly

eans t*at it cannot su!!lant alt*ou+* it ay, as o'ten *a!!ens, su!!leent t*e

la( 7e sai" in an earlier case, an" (e re!eat it no(, t*at all abstract ar+uentsbase" only on e8uity s*oul" yiel" to !ositive rules, (*ic* !re$e!t an" !revail

over suc* !ersuasions %otional a!!eals 'or >ustice, (*ile t*ey ay (rin+ t*e

*eart o' t*e Court, cannot >usti'y "isre+ar" o' t*e an"ate o' t*e la( as lon+ as itreains in 'orce T*e a!!licable a#i, (*ic* +oes bacA to t*e ancient "ays o'

t*e Roan >urists an" is no( still reverently observe" is Hae8uetas

nun8ua contravenit le+isH

42Sanc*e v C, 4)5 P*il 155 -1=.

44I"

4)NPOCOR v Preier S*i!!in+ 6ines, Inc, ;1; P*il 1)1 -200.@ etro!olitan &anA

Trust Co v 7on+, )12 P*il 20= -2001.@ Tabuntin+ v Re*abilitation Finance Cor!,

25= P*il 504 -1.

45)2= P*il )2 -2002.

4;I"

4=Reyes v 6i, )5; P*il 1 -2004.

4uller v uller, 541 P*il );0, ); -200;.

4I"

)0ecenas v C, 25 P*il 55;, 5=) -1.

)1arc*an v en"oa, 14; P*il 12; -1;.@ Sin+son v ra+on, 2 P*il 51) -154.

)2Rollo -3R No 1=40., ! 55

)4I" at ;4
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))In %stores v Su!an+an-3R No 1=514, 1 !ril 2012, ;=0 SCR 5, 105$10;., t*is

Court enunciate" t*at HE'orbearance o' oney, +oo"s or cre"its # # # re'er to

arran+eents ot*er t*an loan a+reeents, (*ere a !erson ac8uiesces to t*e te!orary useo' *is oney, +oo"s or cre"its !en"in+ *a!!enin+ o' certain events or 'ul'illent o'

certain con"itionsH

)5Ite II-2. o' our !ronounceent in %astern S*i!!in+ 6ines v C-3R No =)12, 12

/uly 1), 24) SCR =, 5$=. !rovi"es?

II 7it* re+ar" !articularly to an a(ar" o' interest in t*e conce!t o' actual an"

co!ensatory "aa+es, t*e rate o' interest, as (ell as t*e accrual t*ereo', is

i!ose", as 'ollo(s?

# # # #

2 7*en an obli+ation, not constitutin+ a loan or 'orbearance o' oney, is

breac*e", an interest on t*e aount o' "aa+es a(ar"e" ay be i!ose" at t*e"iscretion o' t*e court at t*e rate o' ;< !er annu No interest, *o(ever, s*all be

a">u"+e" on unli8ui"ate" clais or "aa+es e#ce!t (*en or until t*e "ean" canbe establis*e" (it* reasonable certainty ccor"in+ly, (*ere t*e "ean" is

establis*e" (it* reasonable certainty, t*e interest s*all be+in to run 'ro t*e tie

t*e clai is a"e >u"icially or e#tra>u"icially -rt 11;, Civil Co"e. but (*ensuc* certainty cannot be so reasonably establis*e" at t*e tie t*e "ean" is

a"e, t*e interest s*all be+in to run only 'ro t*e "ate o' t*e >u"+ent o' t*e

court is a"e -at (*ic* tie t*e 8uanti'ication o' "aa+es ay be "eee" to*ave been reasonably ascertaine". T*e actual base 'or t*e co!utation o' le+al

interest s*all, in any case, be on t*e aount 'inally a">u"+e"

);Su!ra

)=3R No 1=1, 14 u+ust 2014, =04 SCR )4

)In Nacar, t*e Court rule" t*us?

To reca!itulate an" 'or 'uture +ui"ance, t*e +ui"elines lai" "o(n in t*e case o'%astern S*i!!in+ 6inesare accor"in+ly o"i'ie" to ebo"y &SP$& Circular

No =, as 'ollo(s?

I 7*en an obli+ation, re+ar"less o' its source, ie, la(, contracts, 8uasi$contracts,"elicts or 8uasi$"elicts is breac*e", t*e contravenor can be *el" liable 'or"aa+es T*e !rovisions un"er Title QVIII on HDaa+esH o' t*e Civil Co"e

+overn in "eterinin+ t*e easure o' recoverable "aa+es

II 7it* re+ar" !articularly to an a(ar" o' interest in t*e conce!t o' actual an"

co!ensatory "aa+es, t*e rate o' interest, as (ell as t*e accrual t*ereo', isi!ose", as 'ollo(s?
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1 7*en t*e obli+ation is breac*e", an" it consists in t*e !ayent o' a su

o' oney, ie, a loan or 'orbearance o' oney, t*e interest "ue s*oul" be

t*at (*ic* ay *ave been sti!ulate" in (ritin+

Furt*erore, t*e interest "ue s*all itsel' earn le+al interest 'ro t*e tie it

is >u"icially "ean"e" In t*e absence o' sti!ulation, t*e rate o' interests*all be ;< !er annu to be co!ute" 'ro "e'ault, ie, 'ro >u"icial or

e#tra>u"icial "ean" un"er an" sub>ect to t*e !rovisions o' rticle 11; o't*e Civil Co"e

2 7*en an obli+ation, not constitutin+ a loan or 'orbearance o' oney, is

breac*e", an interest on t*e aount o' "aa+es a(ar"e" ay be i!ose"at t*e "iscretion o' t*e court at t*e rate o' ;< !er annu No interest,

*o(ever, s*all be a">u"+e" on unli8ui"ate" clais or "aa+es, e#ce!t

(*en or until t*e "ean" can be establis*e" (it* reasonable certainty

ccor"in+ly, (*ere t*e "ean" is establis*e" (it* reasonable certainty,

t*e interest s*all be+in to run 'ro t*e tie t*e clai is a"e >u"icially ore#tra>u"icially -rt 11;, Civil Co"e., but (*en suc* certainty cannot be

so reasonably establis*e" at t*e tie t*e "ean" is a"e, t*e interest s*allbe+in to run only 'ro t*e "ate t*e >u"+ent o' t*e court is a"e -at

(*ic* tie t*e 8uanti'ication o' "aa+es ay be "eee" to *ave been

reasonably ascertaine". T*e actual base 'or t*e co!utation o' le+alinterest s*all, in any case, be on t*e aount 'inally a">u"+e"

4 7*en t*e >u"+ent o' t*e court a(ar"in+ a su o' oney becoes

'inal an" e#ecutory, t*e rate o' le+al interest, (*et*er t*e case 'alls un"er

!ara+ra!* 1 or !ara+ra!* 2, above, s*all be ;< !er annu 'ro suc*

'inality until its satis'action, t*is interi !erio" bein+ "eee" to be byt*en an e8uivalent to a 'orbearance o' cre"it -I" at )5=$)5.

)Rollo -3R No 1=40., !! )0$)1
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PR%SCRIPTION OF CTION

TIRD DIVISION

G.R. No. 198223 February 18, 2015

E"RS OF !"'ANG DARO"'ANG D"AAPAO, *a-ey/ #A'"' D. ALAW",A#AD D. ALAW", AL"O D. ALA W", A'$ AL" D. ALAW", OAA D. A'A',a* AR"A A'A', rere+e*)e by #A'"' D. ALAW",Petitioners,vsA!!. A'D$LLA AL$G, AD%" 'OGA'ONG 'AL! a* E"RS OF AD%" AL"PE!E PANGAR$NGAN, *a-ey/ AD%A S"!!"E SAL"A PANGAR$NGAN, A"NAP. ALANGAD", %AELA P. SAN", ANSAR S. PANGAR$NGAN, RALA P. PANG#A!,%A#LN P. 'AN!O, A#AD !. PANGAR$NGAN, A#ELA P. AARO'A,AERA P. LALAN!O, A#L" !. PANGAR$NGAN, AS"A P. 'ANO#AG, A' DAR" !.

PANGAR$NGAN, ASL"A !. PANGAR$NGAN, AN"PA !. PANGAR$NGAN, #AL"L"!. PANGAR$NGAN, a* ANSAN!O !. PANGAR$NGAN, rere+e*)e by AD%AS"!!"E SAL"A PANGAR$NGAN,Res!on"ents

D % C I S I O N

PERAL!A, J.:

ssaile" in t*is !etition 'or revie( on certiorari are t*e Decision1"ate" /uly 2, 2010 o' t*e Court

o' !!eals in C$3R SP No 024=;$IN an" t*e Resolution2"ate" /uly 2=, 2011 "enyin+

reconsi"eration t*ereo'

On February 15, 2005, !etitioners eirs o' Tiban+ Daroiban+ Diaa!ao re!resente" by

Cabib D la(i, 'ile" (it* t*e Re+ional Trial Court -RTC.o' 6anao "el Sur, ara(i City, a

Co!laint4'or "eclaration o' "ee" o' sale as a nullity, 8uietin+ o' title an" "aa+es a+ainst

res!on"ents b"ulla* lu+, a">i &o+abon+ &alt an" eirs o' a">i li Pete Pan+arun+an,re!resente" by a">a Sittie Salia Pan+arun+an Petitioners alle+e" t*at t*ey are t*e o(ners !ro

in"iviso an" la('ul !ossessors o' a !arcel o' lan" locate" at a"aya, ara(i City (it* an area

o' 15=,=4 s8uare eters covere" by OCT No RP$455 -sub>ect lot., oestea" Patent No)=201@ t*at t*ey ac8uire" o(ners*i! an" !ossession o' t*e sub>ect lan" an" t*e i!roveents

t*ereon by (ay o' in*eritance 'ro t*eir "ecease" +ran"ot*er, Tiban+ Daroiban+

Diaa!ao -Tiban+., (*o (as t*e true an" e#clusive o(ner an" la('ul !ossessor o' t*e

sub>ect lot@ t*at Cota Diaa!ao -Cota. an" Tiban+ +ot arrie" in accor"ance (it* t*eusli rites an" t*e sub>ect lot (as aon+ t*e "o(ries +iven by t*e 'orer to t*e latter@ t*at

"urin+ t*e e#istence o' t*eir arria+e, t*e s!ouses a!!lie" 'or re+istration an" titlin+ o' t*e lan"

an" t*eir *oestea" a!!lication (as a!!rove" an" (as issue" OCT No RP$455 in t*eir naes@t*at soetie a'ter t*e issuance o' t*e sai" title, Cota an" Tiban+ (ere "ivorce" 'ro eac*

ot*er, *ence, Tiban+ an" t*eir t(o "au+*ters continue" !ossession an" o(ners*i! o' t*e

sub>ect lan", (*ile Cota contracte" anot*er arria+e@ t*at (*en Tiban+ "ie", *er "au+*ters
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succee"e" *er on t*e o(ners*i! an" !ossession o' t*e lan" until t*eir "eat*s an" (ere survive"

by *erein !etitioners

Petitioners claie" t*at soetie on !ril 10, 1=, (it*out t*eir Ano(le"+e an" t*at o' t*eir!re"ecessors, Cota e#ecute" a "ee" o' sale in 'avor o' res!on"ents involvin+ t*e sub>ect lan"@

t*at res!on"ents (ere in ba" 'ait* since at t*e tie o' !urc*ase, !etitioners by t*eselves (erein actual !ossession o' t*e lan" in t*e conce!t o' o(ners@ t*at t*e "ee" o' sale (as invali"

because Cota *a" no ri+*t to sell any !ortion o' t*e sub>ect lan" as *e (as not t*e o(ner t*ereo'@t*at t*e "ee" o' sale cast a clou" o' "oubt on !etitionersM title@ t*at "es!ite suc* "ee" o' sale,

res!on"ents *ave never occu!ie" any !ortion o' t*e sub>ect lan" Petitioners state" t*at t*e

sub>ect lan" (as alle+e"ly sol" by Cota to "ecease" S*eiA Pan+an"aan Daroiban+-Tiban+Ms brot*er. (*o t*en "onate" t*e sae to *is "au+*ter an" son$in$la( (*ic* "ee"s o'

sale an" "onation, *o(ever, (ere annulle" by t*e RTC 6anao "el Sur, &ranc* , in Civil Case

No 2)10@ t*at t*ey (ere not i!lea"e" as !arties in t*at case even i' t*ey (ere in !ossession o't*e lan"@ t*at t*e RTC "ecision (as a''ire" by t*e C an" becae 'inal (*ic* cast a clou" o'

"oubt on t*eir title an" o(ners*i! o' t*e lan" Petitioners !raye" t*at t*e Dee" o' Sale "ate"

!ril 10, 1= bet(een Cota an" res!on"ents be "eclare" null an" voi", an" 'or t*e to be"eclare" as t*e ri+*t'ul o(ners an" la('ul !ossessors o' t*e sub>ect lan"

Res!on"ents 'ile" t*eir ns(er)"enyin+ !etitionersM clai o' o(ners*i! an" !ossession o' t*e

sub>ect lan" as t*ey o(ne" an" !ossesse" t*e sae since 1=@ t*at t*e vali"ity o' t*e Dee" o'

Sale "ate" !ril 10, 1= involvin+ t*e sub>ect lan" (as alrea"y u!*el" by t*e RTC 6anao "elSur, &ranc* , in Civil Case No 2)10, entitle" HCota Diaa!ao, et alv S*eiA Pan+an"aan

Daroiban+, et al,H a case t*at *a" alrea"y attaine" 'inality In t*eir S!ecial an" ''irative

De'enses, res!on"ents claie" t*at !etitioners *ave no cause o' action a+ainst t*e because t*e

latterMs clai o' "o(ry or "onation by reason o' arria+e (as belie" by t*e issuance o' OCT NoRP$445 in CotaMs nae@ t*at t*eir clai o' "o(ry or "onation (as not su!!orte" by any (ritten

eoran"u or a+reeent an" no( barre" un"er t*e Statute o' 'rau"s@ t*at t*e action is barre"by !rescri!tion or esto!!el or lac*es@ an", t*at t*e co!laint violates t*e rule on >u"icial stabilityor rule on non$inter'erence

On arc* ;, 200;, t*e RTC issue" its Or"er5(it* t*e 'ollo(in+ "is!ositive !ortion, to (it? T*e

alle+ations containe" in t*e S!ecial an" ''irative De'enses are atters o' evi"ence t*at can be

!ro!erly ventilate" in t*e trial o' t*e case T*e sae is t*ere'ore "enie" 'or lacA o' erit T*e!arties are "irecte" to subit t*eir !re$trial brie' at least 4 "ays be'ore t*e sc*e"ule" !re$trial

con'erence on !ril ;, 200;

7%R%FOR%, set t*e Pre$trial con'erence to !ril ;, at ?00 oMclocA in t*e ornin+

SO ORD%R%D;

On ay 2, 200;, res!on"ents 'ile" a ani'estation=statin+ t*at t*ey >ust receive" t*e RTCOr"er on !ril 1=, 200; an" ove" 'or tie to 'ile a otion 'or reconsi"eration an" to "e'er t*e

subission o' !re$trial brie' an" t*e sc*e"ule" !re$trial con'erence otion 'or

reconsi"eration(as 'ile" on ay 1=, 200; T*e otion 'or reconsi"eration (as "enie" by t*eRTC in its Or"er"ate" February 2, 200
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17/121

On /une ;, 200, res!on"ents 'ile" (it* t*e C Ca+ayan "e Oro City, a !etition 'or certiorari

(it* !rayer 'or issuance o' a !reliinary in>unction Petitioners 'ile" t*eir Coent an"

res!on"ents t*eir Re!ly t*ereto

On /uly 2, 2010, t*e C ren"ere" its "ecision, t*e "is!ositive !ortion o' (*ic* rea"s?

FOR T%S% R%SONS, t*e (rit o' certiorari is 3RNT%D T*e c*allen+e" Or"ers o' t*e

res!on"ent court, "ate" arc* ;, 200; an" February 2, 200, res!ectively, are S%T SID%, an"

anot*er ResolutionLOr"er (ill be entere" in Civil Case No 20);$05 "isissin+ t*e Co!laint10

In so rulin+, t*e C 'oun" t*at t*e RTC *a" un"uly "isre+ar"e" t*e "ecision in Civil Case No2)10 (*ic* *a" alrea"y attaine" 'inality@ t*at it (as alrea"y "eterine" t*at t*e sub>ect lan" (as

t*e very sae lan" in Civil Case No 2)10 (*ic* (as "eclare" to be o(ne" an" la('ully

!ossesse" by Cota an" to +rant !etitionersM "ean" (oul" result to an unen"in+ liti+ation o' t*ecase T*e C 'oun" t*at res >u"icata a!!lie" in t*is case T*e C also 'oun" t*at t*e action *a"

alrea"y !rescribe" as it tooA !etitioners ore t*an 2; years to institute t*e instant case

ence t*is !etition (*erein !etitioners raise t*e 'ollo(in+ issues?

1 7%T%R OR NOT T% SSI6%D D%CISION ND R%SO6BTION OF T%COBRT OF PP%6S, T7%NT S%COND DIVISION IS CONTRR TO 67

ND /BRISPRBD%NC%@

2 7%T%R OR NOT OTION FOR %QT%NSION OF TI% TO FI6%

OTION FOR R%CONSID%RTION IS 66O7%D OR PROI&IT%DP6%DIN3@

4 7%T%R OR NOT T% SP%CI6 ND FFIRTIV% D%F%NS%S OF T%R%SPOND%NTS %&ODI%D IN T%IR NS7%R IN CIVI6 CS% NO 20);$05

R% TT%RS OF %VID%NC% TO &% R%SO6V%D FT%R T% TRI6 OF T%CS% ON T% %RITS11Petitioners clai t*at res!on"entsM counsel receive" t*e

RTC Or"er "ate" arc* ;, 200; "enyin+ t*eir s!ecial an" a''irative "e'enses on !ril

1=, 200;, t*us, t*ey *a" until ay 2, 200; to 'ile a otion 'or reconsi"erationRes!on"ents, *o(ever, 'ile" a ani'estation (it* otion 'or e#tension o' tie to 'ile a

otion 'or reconsi"eration (*ic* is not allo(e" un"er t*e Rules o' Court ence, t*e

RTC Or"er "ate" arc* ;, 200; *a" alrea"y becoe 'inal an" e#ecutory an" coul" no

lon+er be t*e sub>ect o' a !etition 'or certiorari (it* t*e C Conse8uently, t*e C erre"in +rantin+ t*e !etition an" reversin+ t*e RTC Or"ers

7e 'in" no erit in t*e ar+uents

Section 1, Rule )1 o' t*e Rules o' Court !rovi"es?

Section 1 Sub>ect o' a!!eal $ n a!!eal ay be taAen 'ro a >u"+ent or 'inal or"er t*at

co!letely "is!oses o' t*e case, or o' a !articular atter t*erein (*en "eclare" by t*ese Rules tobe a!!ealable
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No a!!eal ay be taAen 'ro?

-a. n or"er "enyin+ a otion 'or ne( trial or reconsi"eration@

-b. n or"er "enyin+ a !etition 'or relie' or any siilar otion seeAin+ relie' 'ro

>u"+ent@

-c. n interlocutory or"er@

-". n or"er "isallo(in+ or "isissin+ an a!!eal@

-e. n or"er "enyin+ a otion to set asi"e a >u"+ent by consent, con'ession or

co!roise on t*e +roun" o' 'rau", istaAe or "uress, or any ot*er +roun" vitiatin+

consent@

-'. n or"er o' e#ecution@

-+. >u"+ent or 'inal or"er 'or or a+ainst one or ore o' several !arties or in se!arate

clais, counterclais, cross$clais an" t*ir"$!arty co!laints, (*ile t*e ain case is

!en"in+, unless t*e court allo(s an a!!eal t*ere'ro@ an"

-*. n or"er "isissin+ an action (it*out !re>u"ice

In all t*e above instances (*ere t*e >u"+ent or 'inal or"er is not a!!ealable, t*e a++rieve"

!arty ay 'ile an a!!ro!riate s!ecial civil action un"er Rule ;5

In Denso -P*ils., Inc v Intere"iate !!ellate Court,12(e e#!oun"e" on t*e "i''erences

bet(een a H'inal >u"+entH an" an Hinterlocutory or"er,H to (it?

# # # 'inal >u"+ent or or"er is one t*at 'inally "is!oses o' a case, leavin+ not*in+ ore to be"one by t*e Court in res!ect t*ereto, e+, an a">u"ication on t*e erits (*ic*, on t*e basis o' t*e

evi"ence !resente" at t*e trial, "eclares cate+orically (*at t*e ri+*ts an" obli+ations o' t*e

!arties are an" (*ic* !arty is in t*e ri+*t@ or a >u"+ent or or"er t*at "isisses an action on t*e+roun", 'or instance, o' res >u"icata or !rescri!tion Once ren"ere", t*e tasA o' t*e Court is

en"e", as 'ar as "eci"in+ t*e controversy or "eterinin+ t*e ri+*ts an" liabilities o' t*e liti+ants

is concerne" Not*in+ ore reains to be "one by t*e Court e#ce!t to a(ait t*e !artiesM ne#tove # # # an" ultiately, o' course, to cause t*e e#ecution o' t*e >u"+ent once it becoes

H'inalH or, to use t*e establis*e" an" ore "istinctive ter, H'inal an" e#ecutoryH

# # # #

Conversely, an or"er t*at "oes not 'inally "is!ose o' t*e case, an" "oes not en" t*e CourtMs tasA

o' a">u"icatin+ t*e !artiesM contentions an" "eterinin+ t*eir ri+*ts an" liabilities as re+ar"s eac*ot*er, but obviously in"icates t*at ot*er t*in+s reain to be "one by t*e Court, is Hinterlocutory,H

e+, an or"er "enyin+ a otion to "isiss un"er Rule 1; o' t*e Rules # # # BnliAe a H'inalH

>u"+ent or or"er, (*ic* is a!!ealable, as above !ointe" out, an HinterlocutoryH or"er ay not
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be 8uestione" on a!!eal e#ce!t only as !art o' an a!!eal t*at ay eventually be taAen 'ro t*e

'inal >u"+ent ren"ere" in t*e case14

3iven t*e "i''erences bet(een a 'inal >u"+ent an" an interlocutory or"er, t*e RTC Or"er "ate"arc* ;,200; "enyin+ res!on"entsM s!ecial an" a''irative "e'enses containe" in t*eir ans(er is

no "oubt interlocutory since it "i" not 'inally "is!ose o' t*e case but (ill !rocee" 'or t*erece!tion o' t*e !artiesM res!ective evi"ence to "eterine t*e ri+*ts an" obli+ations o' eac* ot*er

s suc*, t*e RTC Or"er "ate" arc* ;, 200; ay not be 8uestione" on a!!eal e#ce!t only as!art o' an a!!eal t*at ay eventually be taAen 'ro t*e 'inal >u"+ent ren"ere" in t*e case1)

n interlocutory or"er is al(ays un"er t*e control o' t*e court an" ay be o"i'ie" or rescin"e"

u!on su''icient +roun"s s*o(n at any tie be'ore 'inal >u"+ent15T*is !rescin"s 'ro acourt9s in*erent !o(er to control its !rocess an" or"ers so as to aAe t*e con'orable to la(

an" >ustice,1;an" a otion 'or reconsi"eration t*ereo' (as not sub>ect to t*e liitin+ 'i'teen$"ay

!erio" o' a!!eal !rescribe" 'or 'inal >u"+ents or or"ers1=7e, t*ere'ore, 'in" no erit to

!etitioners9 clai t*at t*e Or"er "ate" arc* ;, 200; *a" alrea"y becoe 'inal an" coul" not be

t*e sub>ect o' a !etition 'or certiorari (it* t*e Court o' !!eals

T*e !etition 'or certiorari (as tiely 'ile" (it* t*e C T*e RTC Or"er "ate" February 2, 200

"enyin+ res!on"entsM otion 'or reconsi"eration (as receive" by t*e latter on !ril , 200

T*ey *a" ;0 "ays 'ro recei!t t*ereo' to 'ile t*e !etition 'or certiorari (it* t*e C T*e last "ayto 'ile t*e !etition 'ell on /une , 200, a Sun"ay, (*ile /une (as "eclare" a *oli"ay, *ence, t*e

'ilin+ o' t*e !etition on t*e ne#t (orAin+ "ay (*ic* (as /une 10, 200 (as still on tie 3oin+

no( on t*e erits, !etitioners clai t*at t*ey "i" not violate t*e rule on >u"icial stability as t*e!arties in t*e instant case an" t*e earlier "eci"e" Civil Case No 2)10 o' t*e RTC 6anao "el Sur,

&ranc* , are entirely "i''erent an" !etitioners (ere not !arties in t*e latter case T*ere is no

absolute i"entity o' causes o' action an" t*e issues involve" are not siilar T*e ain issue in

Civil Case No 2)10 (as (*ic* o' t*e t(o "ee"s o' sale a!!eare" to *ave been e#ecute" by CotaDiaa!ao, ie, one in 'avor o' S*eiA Pan+an"aan Daroiban+ -Tiban+9s brot*er. an" t*e

ot*er one in 'avor o' lu+, &alt an" Pan+arun+an, no( *erein res!on"ents, (as really si+ne" an"e#ecute" by *i Ont*e ot*er *an", t*e ain issue in t*e instant case is (*et*er or not t*e

sub>ect lan" (as +iven by Cota as a "o(ry to *is e#$(i'e Tiban+, i' so, t*e lan" e#clusively

belon+s to !etitioners as co!ulsory *eirs o' Tiban+ an" t*e sale a"e by Cota to res!on"ents

(as voi" In t*e alternative, even assuin+ t*at t*e sub>ect lan" (as not +iven as a "o(ry butac8uire" by t*e s!ouses Cota an" Tiban+ "urin+ t*eir arria+e, !etitioners conten" t*at t*e

sub>ect lan" is a con>u+al !ro!erty to (*ic* Tiban+ is entitle" to a s*are t*ereo' (*ic* Cota

*a" no ri+*t to sell Petitioners insist t*at res!on"ents are buyers in ba" 'ait* as t*ey (ere a(areo' t*e 'orerMs !ossession o' t*e sub>ect lan" at t*e tie it (as sol" to t*e by Cota T*ese

issues, as !etitioners clai, are 'actual (*ic* can only be "eterine" a'ter a 'ull blo(n trial

7e are not !ersua"e"

7e 'in" no error coitte" by t*e C in rulin+ t*at t*e RTC coitte" a +rave abuse o'"iscretion in not "isissin+ !etitionersM co!laint on t*e +roun" t*at t*e issue o' o(ners*i! an"

!ossession o' t*e sub>ect lan" *a" alrea"y been !reviously "eci"e" in Civil Case No 2)10 (*ic*

*a" attaine" 'inality 7e a+ree (it* t*e C t*at res >u"icata is a!!licable in t*e instant case
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Bn"er t*e rule o' res >u"icata, a 'inal >u"+ent or or"er on t*e erits, ren"ere" by a court *avin+

>uris"iction o' t*e sub>ect atter an" o' t*e !arties, is conclusive in a subse8uent case bet(een

t*e sae !arties an" t*eir successors$in$interest by title subse8uent to t*e coenceent o' t*eaction or s!ecial !rocee"in+ liti+atin+ 'or t*e sae t*in+ an" un"er t*e sae title an" in t*e sae

ca!acity1To state si!ly, a 'inal >u"+ent or "ecree on t*e erits by a court o' co!etent

>uris"iction is conclusive o' t*e ri+*ts o' t*e !arties or t*eir !rivies in all later suits on all !ointsan" atters "eterine" in t*e 'orer suit1

T*e re8uisite essential o' res >u"icata are? -1. t*e >u"+ent sou+*t to bar t*e ne( action ust be

'inal@ -2. t*e "ecision ust *ave been ren"ere" by a court *avin+ >uris"iction over t*e sub>ect

atter an" t*e !arties@ -4. t*e "is!osition o' t*e case ust be a >u"+ent on t*e erits@ an" -).t*ere ust be as bet(een t*e 'irst an" secon" action, i"entity o' !arties, sub>ect atter, an"

causes o' action S*oul" i"entity o' !arties, sub>ect atter, an" causes o' action be s*o(n in t*e

t(o cases, t*en res >u"icata in its as!ect as a Hbar by !rior >u"+entH (oul" a!!ly I' as bet(eent*e t(o cases, only i"entity o' !arties can be s*o(n, but not i"entical causes o' action, t*en res

>u"icata as Hconclusiveness o' >u"+entH a!!lies20

It is not "is!ute" t*at t*e RTC 6anao "el Sur, &ranc* , *a" >uris"iction over t*e sub>ect atter

an" !arties in Civil Case No 2)10 an" its Decision "ate" Noveber 21, 2000 (as a >u"+ent ont*e erits, ie, one ren"ere" a'ter t*e !resentation o' t*e !artiesM evi"ence "urin+ t*e trial o' t*e

case@ an" t*at suc* "ecision *a" alrea"y becoe 'inal an" e#ecutory an" an entry o' >u"+ent

*a" been a"e21

Petitioners, *o(ever, clai t*at t*ere is no i"entity o' !arties as t*ey (ere not !arties in CivilCase No 2)10 Petitioners are +ran"c*il"ren o' bot* Cota an" Tiban+ Diaa!ao, an" as

*eirs, t*ey are "eee" in !rivity (it* t*eir +ran"!arents as to t*e !ro!erty t*ey (oul" ac8uire by

in*eritance Notably, Cota an" Tiban+Ms t(o "au+*ters *a" never intervene" "urin+ t*eir

li'etie to clai t*at t*e sub>ect lan" (as +iven as a "o(ry to t*eir ot*er Tiban+ an" t*atCota *a" no ri+*t to sell t*e sae an" it (as only no( t*at !etitioners as +ran"c*il"ren (*o are

claiin+ suc* Since t*e "ecision in Civil Case No 2)10 *a" alrea"y rule" t*at Cota (as t*eo(ner o' t*e sub>ect lan" an" coul" vali"ly convey t*e sae to *erein res!on"ents, !etitionersM

clai o' Tiban+Ms o(ners*i! o' t*e sub>ect lot is alrea"y barre"

Petitioners 'urt*er alle+e t*at t*ere is no i"entity o' causes o' action bet(een Civil Case No

2)10 an" t*e instant case1wphi1One test o' i"entity o' causes o' action is (*et*er or not t*e>u"+ent sou+*t in a subse8uent case (ill be inconsistent (it* t*e !rior >u"+ent I' no

inconsistency (ill result, t*e !rior >u"+ent cannot be *el" to be a bar22

Petitioners, in t*e instant case, raise t*e issue o' CotaMs o(ners*i! an" !ossession o' t*e sub>ect

lan" an" t*e invali"ity o' res!on"entsM "ee" o' sale "ate" !ril 10, 1= Notably, t*ese issues(ere alrea"y resolve" by RTC 6anao "el Sur, &ranc* , in Civil Case No 2)10 (*ere it "eclare"

t*at !lainti''s, Cota an" *erein res!on"ents, are t*e true an" la('ul o(ners o' t*e sub>ect lan"

Suc* "ecision (as a''ire" by t*e C on /uly , 200424(*ic* a"e t*e 'ollo(in+ "is8uisition,aon+ ot*ers, to (it?
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21/121

Since -Cota. Diaa!ao is still t*e o(ner o' t*e sub>ect lan", *e coul" vali"ly convey t*e sae

to *is co$!lainti''s belo( -*erein res!on"ents.Diaa!aoMs o(ners*i! o' t*e lan" in 8uestion

cou!le" (it* *is ri+*t to alienate t*e sae necessarily ren"ers oot an" aca"eic t*e issue o'(*et*er !lainti''s$a!!ellees lu+, Pan+arun+an an" &alt -*erein res!on"ents. are buyers in ba"

'ait*

In any event, t*e !ur!orte" ba" 'ait* o' lu+, Pan+arun+an an" &alt -*erein res!on"ents. is

ne+ate" by t*e "ili+ence t*ey e#ercise" in ascertainin+ Diaa!aoMs o(ners*i! o' t*e "is!ute"lan" at t*e tie it (as o''ere" to t*e 'or sale s testi'ie" to by lu+, *e veri'ie" OCT No RP$

455 (it* t*e Re+ister o' Dee"s an" 'oun" out t*at t*e sub>ect lan" is re+istere" in t*e nae o'

Diaa!ao but encubere" by (ay o' ort+a+e in 'avor o' 6una No ot*er encubrance ortrans'er is annotate" on OCT No RP$455 7*en lu+ ins!ecte" t*e sub>ect !arcel o' lan", it (as

bein+ cultivate" by Solian &ilao, t*e tenant o' Diaa!ao T*us, *e an" Pan+arun+an an" &alt

conclu"e" t*e sale (it* Diaa!ao # # #

Finally contrary to t*e contention o' "e'en"ants$a!!ellants, !lainti''s$a!!ellees -*erein

res!on"ents. are un"er no obli+ation to c*ecA t*e status o' t*e sub>ect !ro!erty (it* -S*eiA.Daroiban+, it bein+ su''icient t*at t*ey veri'ie" t*e title t*ereo' (it* t*e Re+ister o' Dee"s o'

ara(i City an" con"ucte" an ocular ins!ection t*ereon T*e investi+ation t*ey *a" "ili+ently!ursue" to con'ir t*e vali"ity o' Diaa!aoMs title e''ectively ne+ates any ba" 'ait* in t*eir

!urc*ase o' t*e !ro!erty2)-%!*asis su!!lie" .

T*e C "ecision becae 'inal (it* our "enial o' t*e !etition 'or revie( on certiorari in 3R No

1;1)4 on February 24, 200) an" an %ntry o' /u"+ent (as a"e on !ril 22, 200)25Conse8uently, t*e issue o' CotaMs o(ners*i! an" !ossession o' t*e sub>ect lan" as (ell as t*e

vali"ity o' t*e 1= "ee" o' sale bet(een Cota an" *erein res!on"ents are alrea"y settle" issues

(*ic* coul" not be reliti+ate" ane( 7*en a ri+*t or 'act *as been >u"icially trie" an"

"eterine" by a court o' co!etent >uris"iction, so lon+ as it reains unreverse", it s*oul" beconclusive u!on t*e !arties an" t*ose in !rivity (it* t*e in la( or estate2;

T*e vali"ity o' t*e 1= "ee" o' sale in res!on"entsM 'avor *a" alrea"y been "eclare" (it*

'inality, an" i' a''irative relie' is +rante" to !etitioners in t*e instant case, ie, by t*e annulento' t*e "ee" o' sale, t*en t*e "ecision (ill necessarily be inconsistent (it* t*e !rior >u"+ent,

substantial i"entity o' causes o' action is !resent

7e also a+ree (it* t*e CMs 'in"in+ t*at !etitionersM action *a" alrea"y !rescribe" T*e sub>ect

lan" (as bou+*t by res!on"ents 'ro Cota as evi"ence" by a Dee" o' Sale "ate" !ril 10, 1=Cota e#ecute" an ''i"avit2=o' a"verse clai attac*in+ t*ereto t*e "ee" o' sale an" suc*

a''i"avit (as re+istere" an" annotate" in OCT No RP$445 on !ril 11, 1= rticle 11)) -1. o'

t*e Civil Co"e !rovi"es t*at an action u!on a (ritten contract ust be brou+*t (it*in ten years'ro t*e tie t*e ri+*t o' action accrues ere, t*e !erio" o' !rescri!tion s*oul" be counte" 'ro

t*e tie o' t*e re+istration o' sale (*ic* (as a notice to all t*e (orl" T*e a''i"avit o' a"verse

clai (as annotate" on OCT No RP$445 on !ril 11, 1=,2t*us !etitionersM co!laint 'ile"only in 2005 is in"ee" beyon" t*e !rescri!tive !erio" to "o so


22/121

7%R%FOR%, t*e !etition 'or revie( is D%NI%D T*e Decision "ate" /uly 2, 2010 an" t*e

Resolution "ate" /uly 2=, 2011 issue" by t*e Court o' !!eals in C$3R SP No 024=;$IN

are *ereby FFIR%D

SO ORD%R%D

D"OSDADO . PERAL!Associate /ustice

7% CONCBR?

PRES'"!ERO %. VELAS#O, %R.ssociate /ustice

C*air!erson

AR"ANO #. DEL #AS!"LLO4

ssociate /ustice

AR!"N S. V"LLARAA, %R.

ssociate /ustice

'"ENVEN"DO L. REESssociate /ustice

T T % S T T I O N

I attest t*at t*e conclusions in t*e above Decision *a" been reac*e" in consultation be'ore t*e

case (as assi+ne" to t*e (riter o' t*e o!inion o' t*e CourtMs Division

PRES'"!ERO %. VELAS#O, %R.

ssociate /usticeC*air!erson, T*ir" Division

C % R T I F I C T I O N

Pursuant to Section 14, rticle VIII o' t*e Constitution an" t*e Division C*air!ersonMsttestation, I certi'y t*at t*e conclusions in t*e above Decision *a" been reac*e" in consultation

be'ore t*e case (as assi+ne" to t*e (riter o' t*e o!inion o' t*e CourtMs Division

AR"A LO$RDES P.A. SERENOC*ie' /ustice

Foo)*o)e+

Desi+nate" ctin+ eber, in lieu o' ssociate /ustice Francis /ar"elea, !er

S!ecial Or"er No 14) "ate" February 11, 2015


23/121

1Penne" by ssociate /ustice %"+ar"o Caello, (it* ssociate /ustices 6eoncia R

Dia+iba an" Nina 3 ntonio$Valenuela, concurrin+@ rollo, !! )=$5)

2Penne" by ssociate /ustice %"+ar"o Caello, (it* ssociate /ustices bra*a &&orreta an" elc*or Guirino C Sa"an+, concurrin+@ i" at 55$5;

4I" at 5=$;5@ DocAete" as Civil Case No 20);$05 an" (as ra''le" o'' to &ranc*

)I" at =5$2

5I" at 11)@ Per /u"+e Santos & "ion+

;I"

=I" at 115$11;

I" at 11=$122

I" at 145$14;@ Per /u"+e /acob T aliA

10I" at 54 -%!*asis in t*e ori+inal.

11I" at 44

12242 P*il 25; -1=.

14Denso -P*ils., Inc v IC, su!ra, at 2;4$2;) -Citations oitte".

1)Investent, Inc v Court o' !!eals, 241 P*il 402, 40 -1=.

156ey Construction an" Develo!ent Cor!oration v Bnion &anA o' t*e P*ili!!ines, 4P*il =, =5 -2000.

1;I"

1=Denso P*ili!!ines, Inc v IC, 242 P*il 25;, 2;5 -1=.

1Firestone Ceraics, Inc v Court o' !!eals, 3R No 12=022, Se!teber 2, 1,

414 SCR 522, 54;

1ntonio v Sayan V"a "e on>e, 3R No 1);2), Se!teber 2, 2010, ;41 SCR)=1, )=$)0, citin+ +ustin v Delos Santos, 5; P*il ;40, ;)1 -200.

20I"

21Rollo, !! 110$111
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22S(an v Court o' !!eals, 3R No =41, u+ust ), 12, 212 SCR 11)

24Penne" by ssociate /ustice Rebecca "e 3uia$Salva"or, (it* ssociate /ustices

arina 6 &uon an" Rosari D Caran"an+, concurrin+@ rollo, !! 100$10

2)I" at 10=

25I" at 110$111

2;C*urc* ssistance Pro+ra Inc v /u"+e Sibulo, 254 P*il )0), )0 - 1.

2=Rollo, ! )05

2I" at ;
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TORTS

TIRD DIVISION

G.R. No. 17161 February 18, 2015

R !RANSPOR! #ORPORA!"ON,Petitioner,vsL$"S"!O G. $,Res!on"ent

D % C I S I O N

PERAL!A, J.:

&e'ore t*e Court is a !etition 'or revie( on certiorari un"er Rule )5 o' t*e Rules o' Court

seeAin+ to reverse an" set asi"e t*e Decision1an" Resolution,2"ate" Se!teber , 2005 an"u+ust , 200;, res!ectively, o' t*e Court o' !!eals -C. in C$3R CV No )1=5

T*e antece"ent 'acts are as 'ollo(s?

t aroun" ?)5 in t*e ornin+ o' Deceber 12, 14, 6oreta / u, a'ter *avin+ ali+*te" 'ro a

!assen+er bus in 'ront o' RobinsonMs 3alleria alon+ t*e nort*$boun" lane o' %!i'anio "e losSantos venue -%DS., (as *it an" run over by a bus "riven by ntonio P 3iena, (*o (as

t*en e!loye" by !etitioner R Trans!ort Cor!oration 6oreta (as ie"iately rus*e" to e"ical

City os!ital (*ere s*e (as !ronounce" "ea" on arrival4

On February 4, 1), t*e *usban" o' t*e "ecease", res!on"ent 6uisito 3 u, 'ile" a Co!laint'or "aa+es be'ore t*e Re+ional Trial Court -RTC. o' aAati City a+ainst !etitioner R

Trans!ort, ntonio 3iena, an" etro anila Trans!ort Cor!oration -TC. 'or t*e "eat* o'

*is (i'e TC "enie" its liability reasonin+ t*at it is erely t*e re+istere" o(ner o' t*e businvolve" in t*e inci"ent, t*e actual o(ner, bein+ !etitioner R Trans!ort)It e#!laine" t*at un"er

t*e &us Installent Purc*ase Pro+ra o' t*e +overnent, TC erely !urc*ase" t*e sub>ect

bus, aon+ several ot*ers, 'or resale to !etitioner R Trans!ort, (*ic* (ill in turn o!erate t*e

sae (it*in etro anila Since it (as not actually o!eratin+ t*e bus (*ic* Aille" res!on"ent9s(i'e, nor (as it t*e e!loyer o' t*e "river t*ereo', TC alle+e" t*at t*e co!laint a+ainst it

s*oul" be "isisse"5For its !art, !etitioner R Trans!ort alle+e" t*at res!on"ent *a" no cause o'

action a+ainst it 'or it *a" e#ercise" "ue "ili+ence in t*e selection an" su!ervision o' its

e!loyees an" "rivers an" t*at its buses are in +oo" con"ition ean(*ile, t*e "river ntonio3iena (as "eclare" in "e'ault 'or *is 'ailure to 'ile an ans(er to t*e co!laint

'ter trial on t*e erits, (*erein t*e !arties !resente" t*eir res!ective (itnesses an"

"ocuentary evi"ence, t*e trial court ren"ere" >u"+ent in 'avor o' res!on"ent u rulin+ t*at!etitioner R Trans!ort 'aile" to !rove t*at it e#ercise" t*e "ili+ence re8uire" o' a +oo" 'at*er o' a

'aily in t*e selection an" su!ervision o' its "river, (*o, by its ne+li+ence, ran over t*e "ecease"

resultin+ in *er "eat* It also *el" t*at TC s*oul" be *el" soli"arily liable (it* !etitioner R
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Trans!ort because it (oul" un"uly !re>u"ice a t*ir" !erson (*o is a victi o' a tort to looA

beyon" t*e certi'icate o' re+istration an" !rove (*o t*e actual o(ner is in or"er to en'orce a

ri+*t o' action T*us, t*e trial court or"ere" t*e !ayent o' "aa+es in its Decision;"ate" /une4, 200), t*e "is!ositive !ortion o' (*ic* rea"s?

7%R%FOR%, 'ore+oin+ !reises consi"ere", >u"+ent is *ereby ren"ere" or"erin+"e'en"ants Rial Trans!ort an" etro anila Trans!ort Cor!oration to be !riarily an"

soli"arily liable an" "e'en"ant ntonio Parraba 3iena subsi"iarily liable to !lainti'' 6uisito uas 'ollo(s? 1 ctual "aa+es in t*e aount o' P*!=,45=00 sub>ect to interest at t*e le+al rate

'ro t*e 'ilin+ o' t*e co!laint until 'ully !ai"@

2 6oss o' incoe in t*e aount o' P*!500,00000@

4 oral "aa+es in t*e aount o' P150,00000@

) %#e!lary "aa+es in t*e aount o' P20,00000@

5 ttorney9s 'ees in t*e aount o' P10,00000@ an"

; Costs o' suit=

On Se!teber , 2005, t*e C a''ire" t*e Decision o' t*e RTC (it* o"i'ication t*at

"e'en"ant ntonio 3iena is a"e soli"arily liable 'or t*e "aa+es cause" to res!on"ent

ccor"in+ to t*e a!!ellate court, consi"erin+ t*at t*e ne+li+ence o' ntonio 3iena (assu''iciently !roven by t*e recor"s o' t*e case, an" t*at no evi"ence o' (*atever nature (as

!resente" by !etitioner to su!!ort its "e'ense o' "ue "ili+ence in t*e selection an" su!ervision o'

its e!loyees, !etitioner, as t*e e!loyer o' 3iena, ay be *el" liable 'or t*e "aa+e cause"

T*e C note" t*at t*e 'act t*at !etitioner is not t*e re+istere" o(ner o' t*e bus (*ic* cause" t*e"eat* o' t*e victi "oes not e#cul!ate it 'ro liabilityT*erea'ter, !etitioner9s otion 'or

Reconsi"eration (as 'urt*er "enie" by t*e C in its Resolution"ate" u+ust , 200;

ence, t*e !resent !etition

Petitioner essentially invoAes t*e 'ollo(in+ +roun" to su!!ort its !etition?

I

T% COBRT OF PP%6S %RR%D IN FFIRIN3 T% RB6IN3 OF T% R%3ION6

TRI6 COBRT FINDIN3 P%TITION%R 6I&6% FOR T% D3%S CBS%D & T%N%36I3%NC% OF ITS %P6O%%, 7IC 7S NOT SBPPORT%D & T% %VID%NC%ON R%CORD

Petitioner insists t*at t*e C an" t*e RTC (ere incorrect in rulin+ t*at its "river (as ne+li+ent

'or asi"e 'ro t*e ere s!eculations an" uncorroborate" testionies o' t*e !olice o''icers on"uty at t*e tie o' t*e acci"ent, no ot*er evi"ence *a" been a""uce" to !rove t*at its "river (as

"rivin+ in a recAless an" i!ru"ent anner It asserts t*at contrary to t*e 'in"in+s o' t*e courts
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belo(, t*e bus 'ro (*ic* t*e victi ali+*te" is actually t*e !ro#iate cause o' t*e victi9s

"eat* 'or *avin+ unloa"e" its !assen+ers on t*e lane (*ere t*e sub>ect bus (as traversin+

oreover, !etitioner reiterates its ar+uent t*at since it is not t*e re+istere" o(ner o' t*e bus(*ic* bu!e" t*e victi, it cannot be *el" liable 'or t*e "aa+e cause" by t*e sae

7e "isa+ree

Tie an" a+ain, it *as been rule" t*at (*et*er a !erson is ne+li+ent or not is a 8uestion o' 'act

(*ic* t*is Court cannot !ass u!on in a !etition 'or revie( on certiorari, as its >uris"iction isliite" to revie(in+ errors o' la(10T*is Court is not boun" to (ei+* all over a+ain t*e

evi"ence a""uce" by t*e !arties, !articularly (*ere t*e 'in"in+s o' bot* t*e trial an" t*e

a!!ellate courts on t*e atter o' !etitioners9 ne+li+ence coinci"e s a +eneral rule, t*ere'ore, t*eresolution o'' actual issues is a 'unction o' t*e trial court, (*ose 'in"in+s on t*ese atters are

bin"in+ on t*is Court, ore so (*ere t*ese *ave been a''ire" by t*e Court o' !!eals,11save

'or t*e 'ollo(in+ e#ce!tional an" eritorious circustances? -1. (*en t*e 'actual 'in"in+s o' t*e

a!!ellate court an" t*e trial court are contra"ictory@ -2. (*en t*e 'in"in+s o' t*e trial court are

+roun"e" entirely on s!eculation, surises or con>ectures@ -4. (*en t*e lo(er court9s in'erence'ro its 'actual 'in"in+s is ani'estly istaAen, absur" or i!ossible@ -). (*en t*ere is +rave

abuse o' "iscretion in t*e a!!reciation o' 'acts@ -5. (*en t*e 'in"in+s o' t*e a!!ellate court +obeyon" t*e issues o' t*e case, or 'ail to notice certain relevant 'acts (*ic*, i' !ro!erly

consi"ere", (ill >usti'y a "i''erent conclusion@ -;. (*en t*ere is a isa!!reciation o' 'acts@ -=.

(*en t*e 'in"in+s o' 'act are t*eselves con'lictin+@ an" -. (*en t*e 'in"in+s o' 'act areconclusions (it*out ention o' t*e s!eci'ic evi"ence on (*ic* t*ey are base", are !reise" on

t*e absence o' evi"ence, or are contra"icte" by evi"ence on recor"12

'ter a revie( o' t*e recor"s o' t*e case, (e 'in" no co+ent reason to reverse t*e rulin+s o' t*e

courts belo( 'or none o' t*e a'oreentione" e#ce!tions are !resent *erein &ot* t*e trial an"

a!!ellate courts 'oun" "river 3iena ne+li+ent in *ittin+ an" runnin+ over t*e victi an" rule"t*at *is ne+li+ence (as t*e !ro#iate cause o' *er "eat* Ne+li+ence *as been "e'ine" as Ht*e

'ailure to observe 'or t*e !rotection o' t*e interests o' anot*er !erson t*at "e+ree o' care,!recaution, an" vi+ilance (*ic* t*e circustances >ustly "ean", (*ereby suc* ot*er !erson

su''ers in>uryH14Verily, 'oreseeability is t*e 'un"aental test o' ne+li+ence1)It is t*e oission

to "o soet*in+ (*ic* a reasonable an, +ui"e" by t*ose consi"erations (*ic* or"inarily

re+ulate t*e con"uct o' *uan a''airs, (oul" "o, or t*e "oin+ o' soet*in+ (*ic* a !ru"ent an"reasonable an (oul" not "o15

In t*is case, t*e recor"s s*o( t*at "river 3iena (as clearly runnin+ at a recAless s!ee" s

testi'ie" by t*e !olice o''icer on "uty at t*e tie o' t*e inci"ent1;an" in"icate" in t*e uto!sy

Re!ort,1=not only (ere t*e "ecease"9s clot*es ri!!e" o'' 'ro *er bo"y, *er brain even s!e(e"out 'ro *er sAull an" s!ille" over t*e roa" In"ee", t*is Court is not !re!are" to believe

!etitioner9s contention t*at its bus (as travellin+ at a Hnoral s!ee"H in !re!aration 'or a 'ull

sto! in vie( o' t*e 'atal in>uries sustaine" by t*e "ecease" oreover, t*e location (*erein t*e"ecease" (as *it an" run over 'urt*er in"icates 3iena9s ne+li+ence s borne by t*e recor"s,

t*e bus "riven by 3iena bu!e" t*e "ecease" in a loa"in+ an" unloa"in+ area o' a coercial

center T*e 'act t*at *e (as a!!roac*in+ suc* a busy !art o' %DS s*oul" *ave alrea"ycautione" t*e "river o' t*e bus

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