Wednesday, November 24, 2010

November 24 REMLAW REV Notes

    Parties
    Formal parties
    Pro-forma parties
    Necessary parties -
    Relucio v. Lopez: note however, that the party here is neither a necessary nor an indispensable party
    -take note in this case of the COA
    -WHY not necessary party nor indispensable party?
    -on forfeiture of share:
    Auto Corporation v. Intra
    -Autorcor was contesting the inclusion of intrastrada
    -intrastrada issued guarantees...BUT autocorp failed to perform obligaiton so BOC declared issued the bonds as due
    WON  the BOC was improperly pleaded?
    H: BOC was proper party
    -no complete settlement of subject matter if merely order Autocorp to pay...BOC is a necessary party for the complete settlement of the subject matter of the case
    *note that if you are suing a corporation - particularly a foreign corporation, you should state WON they are:
    • Doing business in RP
    • Have a license or not
    >what is the public policy for disallowing foreign corporation doing business in RP but w/o license: regulation of the corporations...
    ...more of the fact that RP wants to exercise sovereignty over these corporations...not really related to taxation or revenues...
    Van ZuiDen v. GTVL Manufacturing 523 SCRA 233;
    F: Van Zuiden HK corp.
    -unlicensed foreign corp
    -entered several transactions w/ Filipino corp
    -in such transactions, Filipino corp instructed Van Zuiden to deliver lace products to another HIK Company.
    -Filipino corp failed to pay; so Van Zuiden filed collection case
    >>>MTD of foreign corp: Van Zuiden is a Foreign corp + doing biz + no license
    >>>Opposition: NOT DOING BIZ in RP
    H:
    If foreign corp
    • Doing biz
      • w/o license: can't sue but CAN BE SUED
      • w/ license: can BOTH SUE AND BE SUED
    • NOT DOING BIZ + w/o license: CAN SUE
    WHY: RP does not have jurisdiction over transactions w/c happen outside RP's jurisdiction
    DOING BIZ defined...regularity...
    Deutsche v CA GR 152318 Apr 16, 2009
    F: GTZ...
    H: GTZ was indeed exercising governmental functions - but cannot claim immunity from suits automatically because just a portion of the German State...
    ...GTZ is akin to a GOCC w/o original charter governed by Corpo Code. It can be sued and can sue.
    -doctrine of processual presumption: applied Corpo Code...GTZ can sue and be sued w/o its consent - so can be sued!
    *capacity to sue different from personality to sue!
    -standing: relevant when questioning some law...but this would come under personality to sue
    -capacity: won a person is allowed to sue...e.g. WON a minor can sue
    Misjoinder/non-joinder of parties
    *WON failure to join parties is a ground for dismissal?
    It is a cause for dismissal only when there does not remain an indispensable parties among the defendants...
    ...if nonjoinder is such that the one that you sued is a real party in interest, you practically have no COA against the person named as defendant - so NO COA!
    ...you can ask that an indispensable party
     Chua v. Torres GR 151900 Aug 30, 2005;
    F: sister (one sued by company) joined her brother as plaintiff vs. Owner and manager...
    -brother did not file CNFS
    H: Brother is not a necessary party - no rights violated...so it was up to the RTC to remove him due to misjoinder... And his failure to submit a CNFS cannot stop the case from proceeding
    Anicia Valdez Tallorin v Heirs of Juanito Tarona GR 177429 Nov 24, 2009;
    Petitioner, in whose favor the new tax dec was issued, questioned the RTC judgment voiding the said tax dec
    H: RTC's decision would affect the rights of the parties in whose favor the RTC decision to annul the new tax dec ...so needs to be impleaded
    -but WON CA erred:
    Littie Sarah Agdeppa v Heirs of Ignacio Bonete GR 164436 Jan 15 2010
    F: there was a piece of land titled in the name of Dorotea Bonete. Procured loan w/ DBP for purchase of farm impleements.
    -DBP collect loan
    -Littie Sarah, Bonete's lawyer, paid for the loan w/ a security (which was later found to be a deed of sale)
    -so action to annul sale
    >>MTD: Dismiss because not real party in interest - not real party in interest because lot always in the name of Dorotea, not IIgnacio
    RTC: granted
    CA: reversed
    H: misjoinder or nonjoinder of parties is not a cause of dismissal. Corut could drop or implead any party to correct the misjoinder or nonjoinder of parties
    -Mrs. Bonete : real owner = real party in interest - not their in her capacity as successor
    Supposing case filed by plaintiff v. B; B alleges that he is not an indispensable party, it is C - so dismiss case. How should the court rule?
    Court should just add the indispensable party, not the dismissal of the case
    Supposing the one that is sued is not even a necessary party? What the court should do?
    Dismiss! No COA. No misjoinder or nonjoinder because there was really no one to join! But dismissal is w/o prejudice. Plaintiff should refile case w/ proper party...
    Successors in interest – Sui Man Hui Chan v. CA, GR 147999, Feb 27, 2004
    *usually in contracts, there is a provision which provides that successors in interest would be bound by contracts entered by their predecessors in interest
    F: contract of lease involved here. Original Lessee and lessor died. Complaint filed for collection of rental vs. Successors in interest.
    -successors in interest questioned the validity of the lease: they were not the signatories to the original contract, so not parties in interest
    ...complaint should have been filed vs. Estate of the original lessee
    H: in the first place, unpaid rentals were during the period after death of original lessee
    Second, successors continued w/ arrangement previously enjoyed by the original lessee
    Lastly, reminded them w/ GR that rights and obligations not personal can be transmitted to the heirs
    Substitute parties
    -happens when somebody dies in a suit
    e.g. A v. B for collection of money. B died. Can the case moved on, w/o tellign the court that the client, B, died? NO! Disciplinary action vs. Lawyer!!! -lawyer should file a notice of death, stating the heirs and their addresses - not in a capacity as a lawyer because atty-client relationship terminated. If heirs want to retain you, enter appearance as lawyer of the heirs...
    -if you cannot get the complete list of heirs, tell the court. Court would probably cause the publication asking for the heirs...
    ...or there could be a settlement of the estate of the deceased, and  an administrator would then be appointed who would represent the deceased in the pending case... (note however in the rules that the adverse party is the one who is given right to cause the initiation of intestate proceedings or testate proceedings)
    *first find out if the action can still be prosecuted after death of deceased...
     Carandang vs. Heirs of De Guzman GR 160347 Nov. 29, 2006;
    F: The petitioner in the case for recover of money died. Respondents said the decision was not valid for failure to substitute heirs
    H: Jurisdiction over the persons of the heirs may be waived...may be implied or express waiver
    -in this case, the heirs of Carandang did not interpose any objection to the jurisdiction of the court; so valid
    -as to the lawyer that did not notify the court of the death: he would probably be subjected to disciplinary action
    Judge Sumaljag v. Literato GR 149787 Jun 18, 2008;
    F: J. Sumaljag seeks to be substituted because he is the transferee of the lot of deceased. Pending case is for declaration of nullity of deed of sale and lease contract
    H: Req'ts in R3.16:
    1. Rule applies when pending action not extinguished by death
    2. Legal reps: executor, administrator, guardian - constituted to take charge of the estate
    3. Duty of counsel is to inform court of fact of death and give names of the heirs
    -here: death cert shows that deceased died. So siblings were the the proper legal reps...
    *stranger things happen in real life. E.g. Plaintiff passed away. About 30 days, his lawyer filed Motion for Substitution wherein instead of naming the wife and children of dead plaintiff, he named the person which was supposedly now the owner of the land . So 2 sections on land: RULE 3, sections 16 and 19 - are involved
    ...counsel should have notified the court of the transfer when the client was still alive ? But the transferree is not really required to be a party in the case. Even if he is not included, he would be bound. But in this case, the court insisted that even if the transferree is now present, the transferor should be represented by his own heirs who would own the property in case the transfer is void...
    -What ma'am did was to OPPOSE THE SUBSTITUTION!
    Domingo v Landicho GR 170015 Aug 29, 2007;
    F: Domingo filed for registration of parcels of land in Tagaytay, opposed by Landicho. Domingo died pending the case. Lawyer failed to inform court.
    RTC: for domingo CA: Reversed
    So heirs of domingo said that they were not bound by reversal of CA H:
    GR: Absent a valid substitution, no jurisdiction over the heirs so not bound by decision of court
    X: IF expressly or impliedly waived the jurisdiction over their persons
    HERE: Heirs actively participated! -warned the lawyer for his failure to inform the court for the death of the client
    *assuming defendant dies in the middle of litigation in case for collection of money under a contract, money claims supposed to be processed in settlement of estate proceedings. Terminate collection of money? NO. Go until judgment made! Judgment would be a notice of claim in the settlement of the estate...
    Napere v. Barbarona GR 160426 Jan 31, 2008
    F: Neighbors fought. While case pending in court, petitioner died. Counsel ifnormed the court but court faiiled to furnish order for substitution of heirs. Court ruled against the deceased
    H:
    GR: For a ruling to be binding, the substituted parties must be included
    X: When parties were aptly represented during the proceedings, pwede...same. Participated in the proceedings...
    *What if the lawyer dies? The party has  option to tell the court about it to get a new counsel...
    If gusto mo matagal case: eh di don't inform the court
    Indigent parties
     IF the party has not sufficient funds...he can ask that he be allowed to pursue case
    Cf: R141.19: Indigent litigants
    Court said that you can still be an indigent if you meet the salary and property requirements under R141!
    -entitled to hearing to prove to the court that you are an indigent
    *what if your salary is more than the minimum wage, how could you still be an indigent? Show that you have many dependents!
    – Sps Algura v. LGU GR 150135 Oct 30, 2006
    F: Combo: one was earning beyond minimum wage, the other was below minimum wage (admitted that they were less to show the injury they sustained)
    H: CANNOT SUE As indigent parties
    ---but the court could still consider the parties as indigent parties if they look indigent
    Rule 4 Venue of Actions
    Personal action – Uniwide v. Cruz GR 171456 Aug 9, 2007
    F: Cruz had a franchise agreement w/ UNIWIDE. There was a venue stipulation that actions brought exclusively in QC RTC. But the two other contracts did not have venue stipulation
    MTD: Improper remedy
    H: Venue stipulation should be construed strictly. In this case, only the contract between Cruz and Uniwide which has venue stipulation. The case involves other cases and parties, not limited to the franchise contract
    *so should put ONLY and EXCLUSIVELY as descriptive words for venue. If not, the venue is just a choice of venue!
    Real Action
     Infante v. Aran Builders, GR 156594 Aug 24, 2007;
    F: Aran Bldrs filed complaint for specific performance for Infante to issue deed of sale in lot in Ayala Alabang; RTC Makati  (no courts yet in Muntinlupa) ifo of Aran Builders. Judgment not executed w/n 5 year period, so petition for revival, this time w/ RTC Muntinlupa. Infante filed MTD for venue improperly laid.
    H:  RTC Muntinlupa has jurisdiction - proper venue. Property located in Muntinlupa. So Action to Revive judgment would now depend on the nature of the action. Initially a personal action but was transformed into a real action as the execution involved real property.
    *what if the property involved is located on the boundary. Where would you file? Either is proper. Allowed under the rules.
    HiYield v. CA GR 168863 Jun 23, 2009
    Principal party ; when to object –
    *what if many plaintiffs. Where should principal party file case?
    Irene Marcos-Araneta v. CA GR 154096 Aug 22, 2008
    F: Irene filed before RTC Laoag v. Benedicto. MTD on the ground of improper venue
    RTC: dismissed complaint: indeed venue improperly laid. Irene was residing in Makati,
    Residence in R4: HABITUAL RESIDENCE
    -Irene named supposed new trustees who were residents of Ilocos Norte in an amended complaint. MTD again. Not granted now, ordered to answer
    H: Since Irene is principal plaintiff, it is her residence which would determine the venue of the case. So MAKATI dapat!
    *So if there are many plaintiffs, determine who is the principal party
    Stipulated venue not exclusive -
    Philbanking v. Tensuan, 230 SCRA 413;
    -parties submit RTC Valenzuela. Action brought before RTC MAKATI
    H: Not exclusive stipulation of venue
    *if corporation: Residence is PRINCIPAL OFFICE
    ...but is it now allowed where physical presence of corporation located?  Pwede
  1. Note that in stipulating the venue, do not stipulate the specific court, i.e. RTC, MTC...
  2. Spouses Lantin v. Judge Lantion, GR No. 160053, Aug 28, 2006
    Stipulation: All actions under contract exclusively in proper court of Makati or any other venue which mortgagee may choose and the mortgagor waives all other venues
    HERE: REALLY EXCLUSIVE
    Rule 5 Uniform Procedure in Trial Courts
    Revised Rules on Summary Procedure
    -practically all proceedings before MTC governed by summary procedure
    -shorter than regular rules! So always take note when these rules apply!
    Summary procedure
     Estate of Macadangdang v Gaviola GR 156809 Mar 4, 2009;
    F: Unlawful detainer case vs. Occupants of land by mere tolerance
    H: MFR not a prohibited pleading. Summary procedure rules apply only to MTC. If appealed to RTC, summary proceeding rules not anymore applicable
    Angelina Soriente v Estate pf Arsenio Concepcion GR 160239 Nov 25 2009;
    F: heirs of Arsenio filed ejectment case v. Soriente et al. During pretrial conf, soriente failed to appear but signed answer submitted by fellow defendants. MTC ruled ifo heirs, stating that failure to appear is a ground to rule ifo plaintiff - already submitted for decision. Soriente opposed, saying that since she signed same answer, though had a different case, so proceed still...
    H: Although petitioner's contention says that sec. 7 of rules on summary procedure does not apply to her, court held that mere fact of failure to appear for her own case still rendered case submitted for submission
    ...MTD not allowed: there is still a need to specifically deny the capacity to sue of the heirs...failure to do so warranted a valid judgment ifo respondents
    *note that CTA disallows MTD. So incorporate grounds for MTD in the answer as affirmative defenses
    *in MTC proceeding, what if LACK OF JURISDICTION OVER SUBJECT MATTER, can you ask MTC to proceed first on the issue of lack of jurisdiction? NO. Can't. Just keep raising the issue in your submissions and the court would be compelled to rule on that together with other issues.
    *If MTC does not have jurisdiction, ruled that it had, RTC ruled that MTC does have jurisdiction: RTC would no longer have to remand it. Proceed
    Sps Edillo v Sps Dulpina GR 188360 Jan 21 2010
    Rule 6 Kinds of Pleadings
    * You usually put the other claims in the answer, if the defendant
    *What about a TPC? A separate claim that the defendant would have another person not yet a party...ask for summons to be served to the new party so that he would be brought in
    *sometimes its very difficult to make an asnwer because the complaint is badly written
    Answer
     Rosete v. Lim, GR No. 136051, Jun 8, 2006
    F: action for specific performance and damages vs. ROSETE et al. MTD filed for lack of jurisdiction over subject matter. Denied. So filed counterclaim, manifested that they filed P4C and prohinbition assailing denial of MTD. Filed answer ...cautelam. Filed notice to take depositions...
    WON the answer filed here a real answer?
    Ex abudante cautelam - filed w/ caution
    Usually used:
    • MTD denied. But you truly believed you have a ground for MTD. In the meantime, you period to file an answer is running. So while you are filing a MFR, file this kind of answer so that you would not be in default
    *in such a petition, you still need to put in the anwer your ground for MTD
    *reqts for an answer:
    1. Denial -specific denials, not general
    Kinds:
    1.  
    *lack of knowledge is a denial
    Compulsory counterclaim –
    Financial Builders. V. FPA 338 SCRA 346;
    F: Russian embassy decided to build embassy in Forbes Park. Russian embassy contracted Financial builders to build property, several structures. Forbes park association refused the entry of the trucks because what's going to be constructed is prohibited. Contractor filed suit vs. Forbes park saying they should not be prevented. FPA filed MTD, saying that the contractor is not real party in interest - Russian Embassy should be the party. FPA won. So building not finished. FPA probably incurred lots of damages for the incident. SO FPA filed complaint also vs. Financial builders. - here compulsory counterclaim because it was in connection of the first case.
    H: Cannot file the new case because already barred!
    -even if FPA filed MTD, it is their fault for not asking compulsory counterclaim. Should have filed instead an answer with compulsory counterclaim!
    *Usually, MTD just filed to buy time, especially if filed MTD for lack of jurisdiction
    *what about R11.10? Pwede pag answer filed. But here, MTD filed!
    *where would the dismissal of the case be with prejudice:
    • Prescription
    • Forum shopping
    • Litis pendencia, res judicata
    *if refile, indicate in CNFS the reason for the initial dismissal of the case!
    Reillo v. San Jose GR 166393 Jun 18, 2009
    F: Relatives disputes over a parcel of land. Extrajudicial partition. In answer, there was a compulsory counterclaim for accounting and partition for the other parcel of land. Failure to pay docket fees.
    H: There are 2 types of counterclaim.
    -needs to pay docket fees only when there's a permissive counterclaim
    Permissive counterclaim – Banco de Oro v. CA GR 160354 Aug 25, 2005; Dec 19, 2007
    F: Firs action extrajudicial foreclosure. Second was to stop the foreclosure. Deny TRO. Proceeded w/ extrajudicial foreclosure. Amount of foreclosure not enough, demanded payment of deficiency. Filed supplemental complaint, alleging that BDO proceeded w/ extrajudicial foreclosure even if contrary to law. BDO filed answer to supplemental complaint, saying that it was not contrary to law. Another case for the balance...MTD: BDO's claim should have been included in the answer to the supplemental complaint
    H: Mandaluyong RTC should not dismiss the case because claims of BDO is not a compulsory counterclaim. Claim for deficiency not yet present at time counterclaim filed.
    *but since permissive, it is the option of the claimant what to file
    Third party complaint –
    -cannot just drag in a Third party to a suit when they have no connection to the suit
    Asian Construction v. CA 458 SCRA 750;
    F: Asian leased machineries from Monarch. ...a 3p involved. Monarch filed action for sum of money vs. Asian. Asian wanted to bring in 3p through TPC.
    H: No causal connection to 3P with Monarch. So cannot file TPC. Court cannot be collection agency
    Sy Tiong Shion v Sy Chin GR 174168/179438 Mar 30, 2009
    F: 2 sets of families which hold title to company -Prejudicial question of determination of misappropriation of funds?  TPC is prohibited pleading in rules of intracorporate controversies?
    H: Civil case for accounting of damages not prejudicial question
    -as to 2nd petition: Interim Rules of intracorporate Controversies: TPC is actually allowed...but the claim should be related also to the main claim
    -in determining the sufficiency of TPC - look at complaint and TPC?
    Cross-claim – Torres v. CA 49 SCRA 67 - illustrates...
    A sued B and C; B and C were friends, now enemies. B files cross claims v. C but subject matter is not related to the initial suit filed by A. Could that be filed?
    F:
    H: If you have already dismissed the main complaint, the cross claim cannot continue. Cross claim only arises from the main complaint. Intertwined ; unless carries prayer for affirmative relief. 
    Rule 7 Parts of a Pleading
    Sufficient in form/substance – Sps Munsalado v. NHA GR 167181 Dec 23, 2008
    *note that the law is required only to be stated in the ANSWER as a matter of defense. NOT in the complaint!
    *The designation does not determine WON the complaint is sufficient in substance
    -why required that the client also sign: because he is the one who knows WON the facts stated are true and correct
    *now requires MCLE + fax and phone number
    Signature of counsel – Republic v. Kenrich Dev. Do., GR No. 149576, August 8, 2006
    -unsigned pleading has no legal effect - here another person signed the pleading
    Verification/Certification – Madara v. Porillo GR 172449 Aug 20, 2008;
    -verification is merely a statement that the facts prepared by lawyer is true
    CNFS: big change - no such thing before
    -initially, they were strict
    IF CORP: OFFICER + Board Res authorizing such officer to sign
    ...but over the years, there are exceptions: latest, it is assumed that if you are a corporate officer of highest level, or section involved, you are assumed to have authority to bind the corporation...but should submit bylaws to show such authorization...or determine WON you are supposed to know the details in the CNFS
    *always try to have the client sign it himself. If corporation, have board res, which comes in the form of a secretary's certificate
    *if you have several plaintiffs, all sign. If all have uniform interest, there is a case which says that if they have same interest, signature of all not really required.
    Kaunlaran v. Uy GR 154974, Feb 4, 2008;
    Sps Valmonte v. Alcala GR 168667 Jul 23, 2008
    -you can actually email the draft pleading wherever he is, print signature page, sign it, fax it to you, present it to court, manifest that you are going to present the original...the client would have it notarized in Philippine Consulate...then send it through courier
    Who can sign w/o sec cert – Mid-Pasig Land v Mario Tablante GR 162924 Feb 4, 2010
     -you don't need it in certain level of officers
    Rule 8 Manner of Making Allegations in Pleadings
    Ultimate facts – Far East Marble v. CA GR 94093 Aug 10, 1993
    What you allege in the complaint: UF: essential and substantial facts - elements of COA, or which makes up...
    Evidentiary facts: tend to prove the UF
    Specific denial under oath – Filipinas Textile v. CA 415 SCRA 635
    *if there is an actionable document alleged in the complaint, specific denial under oath required or else invalid
    No knowledge – Warner Barnes v. Reyes 103 Phil 602
    -cannot be used indiscriminately, or else, may become a general denial
    F: Here, no knowledge as to the truth of almost all the allegations, including the documents attached in the complaint
    H: General denial of knowledge and belief as to the truth of the allegations...can't say no knowledge
    *only reserved to allegations, specifically to
    • allegations as to the hiring of lawyer because of suit
    • In tort action,  sleepless nights, anxiety...blah...
    Modes of specific denial – Gaza et al v. Lim GR 126863 Jan 16, 2003;
    Actionable document – Casent Realty v. Philbanking GR 150731 Sep 14, 2007;
    *supposing actionable document is in support of a counterclaim...reply normally required from the plaintiff. But the rule of reply states that if did not file a reply, deemed controverted any new allegations. So would that work, is it deemed contraverted? R8.8 controls, not the rule on reply! This is a specific rule that requires specific requirement for denial of actionable document!
    X:
    1. Not a party to the actionable document
    2. Noncompliance with the order for inspection of document
    *admission only as to
    Genuineness: signature is authentic
    Due execution: proper authority to sign the document
    ...not as to intrinsic validity
    *deny under oath only if you are sure it is not your signature
    Malayan v. Regis Brokerage GR 172156 Nov 23, 2007
    Rule 9 Effect of Failure to Plead
    *in bar: almost always asked about default
    No default motu proprio – Santos v PNOC GR 170943 Sep 23, 2008
    Failure to appear – Monzon v. Sps Relova GR 171827 Sep 17, 2008
    Remedies of party declared in default –
    ..depends on the date when the default judgment was found out
    Supposing you receive it today right after order made: MR/MNT - should state why not able to file answer
    Supposing judgment not sent to you but to lawyer who went missing...petition for relief
    You got the default judgment, you don't have ground for MNT/MR: appeal to default judgment
    Cf. CEREZO v. TUAZON, citing LINA v. CA:
    a)The defendant in default may, at any time after discovery thereof and before judgment, file a motion under oath to set aside the order of default on the ground that his failure to answer was due to fraud, accident, mistake or excusable negligence, and that he has a meritorious defense (Sec. 3, Rule 18 [now Sec. 3(b), Rule 9]);
    b)If the judgment has already been rendered when the defendant discovered the default, but before the same has become final and executory, he may file a motion for new trial under Section 1 (a) of Rule 37;
    c)If the defendant discovered the default after the judgment has become final and executory, he may file a petition for relief under Section 2 [now Section 1] of Rule 38; and
    d)He may also appeal from the judgment rendered against him as contrary to the evidence or to the law, even if no petition to set aside the order of default has been presented by him (Sec. 2, Rule 41).
    Gomez v. Montalban GR 174414 Mar 14, 2008
    Default judgment – Gajudo v. Traders Royal GR 151098, Mar 21, 2006
    *just read the cases because if you are a practicing lawyer, you should not be minded by default!
    *most filed pleading:
    1. Motion for extension of time to file answer
    2. MFR
    3. Motion for resetting of trial date
    Rule 10 Amended and Supplemental Pleadings
    Substantial amendment - PPA v. Gothong and Aboitiz GR 158401 Jan 28, 2008
    NOW: can now amend even if change competely the theory of the case
    ...before answer filed
    ...if only MTD filed
    IF ANSWER FILED: w/ leave of court if SUBSTANTIAL AMENDMENTS.
    *formal amendments may be filed at any time
    *the amended complaint supersedes the original pleading
    ...BUT the judicial admissions made in the amended pleadings may still be used.
    ....PLUS deemed to have waived claims and defenses if not mentioned again in the amended pleading. UNDERLINE THE AMENDMENTS!
    *Supplemental pleadings: add supervening events
    When amendments allowed - Quirao v. Quirao 414 SCRA 430;
    Bautista v. Maya-Maya Cottages, GR 148361, Nov 29, 2005;
    Marcos-Araneta et al v. CA GR 154096 Aug 22, 2008
    -when she impleaded new plaintiffs, there was no responsive pleading yet. So court allowed it
    Conform to evidence – Cagungun v. Planters Dev Bank GR 158674 Oct 17, 2005
     R10.5
    If evidence objected to on the trial on the ground that it is not alleged in the pleadings, court may allow the pleading to be amended...
    2 instances
    1. Evidence not objected to - deemed to have been expressly consented to by the party
    >so here, the court could allow the amendment of the pleading to conform to the evidence presented. The other party cannot complain here!
    1. Where you are now presenting evidence outside the issues of the case, the other party objects
    >it is where the court could deny or not...but the court can allow the amendment of the pleading + party should explain why it is material to the whole case
    >>>should not be allowed if the other party would be prejudiced!
    Rule 11 When to File Responsive Pleading
    e.g. You have a pleading due on Sunday, Nov. 28. But Nov. 29 declared a holiday. So now file pleading on the 30th, Tuesday
    ...but what if you are not yet ready to file the pleading? File MOTION FOR EXTENSION of time on the FRIDAY, Nov. 26...as courtesy to the court. But yes, you can still file on the 30th, on the day due.
    ...note however that there are some cases where a period is provided so no extension
    Saturday, Sunday or legal holiday - Alarilla v. Ocampo 417 SCRA 601
    Rule 12 Bill of Particulars
    -why not really used: you might not be prepared to defend the client
    When a complaint is vague – Bantillo v. IAC, GR No 75311, Oct. 18, 1988;
    Here: missing part of the complaint was the allegations of Mrs. Bantillo on her authority to sue on behalf of other heirs of the father.
    H: it must be particularly averred! So motion for bill of particulars proper
    *also should state who are being represented! Enumerate the heirs
    * In this case, ma'am said that it was better that Mrs. Bantillo be required to show her authority or else the complaint be dismissed w/o prejudice, and Mrs. Bantillo could refile it again.tatagal.
    For next week: R13-29

Friday, November 19, 2010

SPIT: November 20

Steps in determining the tax due

AMT
  • Capital - extend
  • Income
    • Exempt
    • Taxable
      • Schedular (because the income is subject to final withholding tax)
        • Resident Payee
          • Capital gains tax on real property in the Philippines
            • Why impose tax only on property in the Philippines: CHA:Territorial application of Philippine laws
-SIR: sabi ng law eh
  • Capital gains tax on shares of stocks
  • Passive investment income
    • Interest income
    • Investment income
    • Dividends
    • royalties
  • Nonresident Payee
[note: once a type of income has been subjected to tax, it would not be subject to another income tax - one tax system rule]
  • Global
-if schedular tax system does not apply?
-system where the taxpayer is required to lump up all items of income earned during a taxable period and pay under a single set of income tax rates on these different items of income
-REMEMBER THE FORMULA! (see page 68 of Reviewer on Taxation (2008))
HOW TO COMPUTE INCOME TAX:
GLOBAL TAX SYSTEM:
GS (gross sales)
-COS (Cost of sales)
GI (Gross income
-D (deductions)
-PAE (Personal and additional exemptions for individuals)
NTI (Net taxable income)
x rate
IT due
-CWT
BALANCE

3 principles in Philippine tax laws to determine when to impose tax
  1. Citizenship principle
-Filipino citizens
-you are taxed based on your citizenship; under old law, you are entitled to all the protection that your state could give you because of your citizenship...and then you could be imposed income tax
-NOTE: under new law, impose income tax only on worldwide basis only on RESIDENT CITIZENS
  1. Resident citizens
  2. Nonresident citizens
  1. Residence principle
-concerns aliens more
  • Resident alien
  • Nonresident aliens
  1. Source principle
    • Nonresident aliens
    • Foreign corporations

WHO IS THE TAX PAYER
[Sec. 23]
*don't argue anymore on whether the person is a citizen or not because usually the problem would give the status of the person
Taxpayer
Which are taxed
INDIVIDUAL
CITIZEN
>resident
>nonresident
ALIEN
>resident
>nonresident

CORPORATIONS
>Domestic corporations
>Foreign corporations
...resident
...nonresident

SECTION 27
SECTION 28
A
B
Partnerships

Estates/trusts


Review on cOrpo
Incorporators:
At least 5 natural persons
Majority of the incorporators must be resident citizens
citizenship requirement: required for President, Secretary and Treasurer
e.g. GE Corporation
5 natural persons - all foreigners but residents of RP + GE US - is this a domestic corporation? YES, AS long as organized under Philippine Laws
*note the negative list: list of industries wherein foreigners could not enter
-if it is a domestic corporation, what do they get from the SEC? Certificate of Registration
*is there a difference in tax treatment between a
PHILIPPINE BRANCH (SEC. 28A(5)]
SUBSIDIARY

e.g. SMC
-a local corporation listed in the PSE
-assuming that there are 5 natural persons - Filipinos - they went to Japan, organized SMC Japan - they own  1% and 99% owned by SMC Philippines - FOREIGN CORPORATION because organized under Japanese laws
e.g. Of foreign corporations - in laymen's term: branch of a Foreign corporation here in RP
-if they open a branch here in RP, what do they get? LICENSE TO DO BUSINESS IN THE PHILIPPINES

There are 5 types of income under the law
[assignment!]

ESTATES
-created by operation of law, when an individual dies, leaving properties to his compulsory heirs
e.g. House left by a deceased person. The heirs merely resides on the house. Are they liable for income tax? NO. No income received
...when liable for income tax? When the estate earns income, e.g. When the house is being rented out or being used for other commercial purposes

e.g. X love Y, gets married and have two kids - A & B...X dies
Liable on estate tax? Sabi ni sir oo, as long as there is a transfer - there is a transfer by operation of law upon X's death

TRUST
-a legal arrangement wherein the owner of the property (trustor) transfers ownership to the trustee who would hold and control the property belonging to the owner's instructions, for the benefit of a designated person (beneficiary)
-who is the person subject to the tax? The recipient of the income
  • Trustor: if the trust is revocable (section 63)
  • Trustee: if the trust is irrevocable (Section 60-61)

How to tax income of the estate or trust?
e.g. Property of the estate/trust earns P5ook per month ; X earned P200k per month when he died.
X died aug. 31, 2009. at the end of the year, Y comes to you for advice and asks, "Atty., may tax ba akong babayaran for 2009?"
ANSWER: Estate liable for estate tax on the income of the estate from September to December: P2M
Income tax from January to August: P1.6M tax base
(but note the personal exemption): Is he entitled to the tax exemption or is the exemption already availed of by the estate so it would not be available anymore to the income tax?
Section 35 (C), par. 2: "If the taxpayer dies during the taxable year, his estate may still claim the personal and additional exemptions for himself and his dependent(s) as if he died at the close of such year
ADDITIONAL PROBLEM: is the property the exclusive property of X?
...hahaha okay fine, nosebleed...
...SIR: If you could split the income of the property, lower tax rate is imposed! PROGRESSIVE TAX SYSTEM...the higher the tax based, the higher the tax rate
...so it would be more beneficial to the client to assume that the property is co-owned by Y and so she would have to declare her own income from the property, and she would also be entitled to her own exemption

CO-OWNERSHIPS
-whenever the ownership of an undivided thing or right belongs to different persons
e.g. TCT co-owned by A, B, C, & D
...you don't know yet which part of the lot is yours
...could you sell your portion of the property? YES (but question is, are you required to get the consent of the other co-owners?)
If A sells his inchoate right to the property, what kind of tax should be imposed?
>INCOME TAX
When would you want to pay a certain tax:
CGT: would want to use it if the FMV or GSP huge! You would only pay 6% based on GSP or CFMV and you gain more; because even if there is a loss, you are still presumed by law that you made a gain...so 6% would still be imposed on you
Vs.
Income tax: if the FMV or GSP is small or there is a loss!
-when the person dies, the transfer of ownership is automatic; so there is co-ownership established.
-when the property left by the decedent is income producing...
...continue example: Mr. X dies august 30, 2009. He has left a 20-door apartment which is being rented out, co-owned with other people.
  • When does the rental income become the property of the heirs, and each of them are required to report their income share in their ITR: upon partition of the property
    • See: partition ideally should be done 6 months after death, file estate tax return, attaching extrajudicial partition, and attestment that there are no loans...
Let's say the property upon death:
200M - Forbes property
100M - apartments
Total: 300M
>the property would be divided into two (assumed as conjugal property): 1/2 of the properties to the wife, 1/2 to the estate
>among  the heirs, the 1/2 estate would be divided...(REVIEW SUCCESSION)
>ONCE you find out which part belong to you, you can now report as individual income the income derived from the apartment which was assigned to you

PARTNERSHIPS
e.g. A & B contributed money, made a profit of P1M. Agreed that P400k each would be distributed to each of them, leaving P200k to the partnership. Is the partnership liable for income tax, and if so, how much income subject to income tax. Is the partners liable for income tax individually, and if so how much income is subject to income tax?
Under SEC22B, Tax Code is considered as a corporation subject to income tax. SO taxed similarly as a corporation.
Assignment!

Remedial Law Class Notes: November 17

    December 8 - Quiz 1
    January 26 - Midterms
    February 23 - Quiz 2
    March 24 - Finals
    *but the schedule would depend whether or not we finish the lessons assigned
    Allegations of the complaint would determine the jurisdiction
    Note that Hasegawa is not really directly on Hasegawa
    HASEGAWA CASE
    -contract perfected in Japan, between Japanese nationals, project performed in RP
    -Action only touches  on the right of plaintiff under the contract - on the implementation of the ICA, not its  validity
    -defendants argued first lex loci contractus and celebrationis, but later raised forum non conveniens and rule of the most significant relationships
    H: the arguments touches on the question of choice of law, not the jurisdiction
    -the jurisdiction is based on the allegations in the complaint (pero nabanggit lang)
    *3 actions that the court may take
    1. Look at which court has jurisdiction over the case
    2. Look at which law would apply for the contract
    3. Look at which law would apply as to the execution of the contract
    -A MTD is not really a pleading which would raise issues
    ...take note of the grounds for MTD
    ...if for lack of jurisdiction, look at the allegations in the complaint to determine jurisdiction
    FIGUEROA Case - explain the history and meaning of jurisdiction of estoppel
    Note that this is a criminal case. Issue of jurisdiction was only raised upon appeal
    GR: Lack of jurisdiction can be raised any time, even on appeal
    X: in exceptional circumstances, like that in Tijam v. Sibonghanoy (so if the lack of jurisdiction was raised in a MTD only after 15 years from the start of the case - Ma'am said the case was resolved in another 15 years from the filing of the MTD)
    Payment of Filing fees
    Ruby Shelter v. Formaran
    -payment of the correct filing fees would not automatically divest the court of jurisdiction but only after failure to pay the filing fees even after reasonable time to do so
    -in this case, case was worded so that it was only for declaration of nullity of the deeds of sale, but the case involved the recovery of real estate - so basis of the docket fees should have been the fair market value of the property and not the fixed fee for actions incapable of pecuniary estimation
    Chavez v. CA
    -not exactly a very good example because this is a criminal case and in criminal cases, venue is jurisdictional
    -this is a criminal case for libel
    Where filed: determine first
    1. If offended party is a public or private person
    2. If private: where the article was first published or where the private individual resides
    3. If public person: in place where the public officer was working?
    -check!
    -so in libel, should ALWAYS STATE IN THE INFORMATION
    • The libelous statement allegedly made
    • Explain why you are filing the case in that jurisdiction/venue
    Springfield v. RTC
    -was used by ma'am in her midterms question
    -outlines where the petition for annulment of the decisions of QJAs should be filed
    -short facts: Decision of the DARAB was raised for annulment to the RTC
    -H: DARAB is a QJA which is of the same rank as RTCs (and not of inferior courts which maybe under the jurisdiction of the RTC), as also expressly stated in the organic law of the DARAB, its procedural rules, and in ROC as amended
    **So if there's a QJA involved, should read the law providing the existence of the agency for mode of appealing it:
    e.g. Before, decisions of the NLRC were directly filed w/ SC but was changed....now to CA!
    ...should not assume that R43 would govern!
    *R47 allows petition of judgment - but only of RTC! And to CA!
    ...supposedly the DARAB decision was rendered in GADALEJ, could the parties file Certiorari under R65? CANNOT DO SO IF THERE ARE OTHER SPEEDY REMEDY AVAILABLE. Should still go under ordinary appeal to CA under the procedural rules of DARAB
    Sta. Ana v. Carpo - primary jurisdiction
    -The doctrine of primary jurisdiction precludes the courts from resolving a controversy over which jurisdiction has initially been lodged in an administrative body of special competence.
    AGRARIAN LAW IMPLEMENTATION CASES: RETENTION RIGHTS + EXCLUSION/EXEMPTION of the subject land from coverage - DAR SECRETARY
    AGRARIAN DISPUTES: DARAB
    *if mentioned in the pleadings of one or the other party being a tenant - DARAB!
    *if dispute retention or possession of the tenant/other claimant - DARAB pa rin daw sabi ni ma'am
    NOT BROUGHT TO DARAB: to RTC acting as special agrarian courts
    • just compensation of the land owner
    Is there any instance where it would go directly to RTC: if the land was never under the coverage of the agrarian reform law! In the answer or MTD, can raise theaffirmative defense that this involves tenancy relations but would not divest the RTC of jurisdiction
    SC- power of judicial review
    History: from US
    Garcillano v. House
    2 cases filed w/ SC for injunction, to enjoin the playing of the Gaci tapes - in House and in Senate. But since the tapes were already played in Congress, the petition was considered moot. The second was not, and was granted. JR mentioned by the court by saying that they are not going to exercise JR if there is nothing to rule on - since it was already moot!
    *review on Consti
    -should have legal standing to sue/invoke the court's JR power
    ...here: taxpayer suit allowed because taxpayer's money wasted by its use in committee hearings
    Lazatin v. Disierto
    -questioned the long held doctrine that the Ombudsman has prosecutorial powers and has supervision over the Office of the Special Prosecutor
    H: no strong or compelling reason to overturn stare decisis
    The doctrine of stare decisis et non quieta movere (to adhere to precedents and not to unsettle things which are established)
    Stare decisis
    Law of the case
    Jurisprudence part of the law of the land. If said of the SC, final!
    Usually applicable only between the same parties involved in the same case, same issue
    Ferdinand Cruz v. Mijares
    -Cruz entered appearance based on R138, section 34, appearing as plaintiff in behalf of himself. He was mistaken as appearing under OLA. His petition to have the judge inhibit herself was denied. He based such petition on the remark made during pre-trial when the judge allowed a MTD when Answer was already filed.
    -Hierarchy of Courts: applies when question of facts are involved
    *M0tion to inhibit usually filed merely just to delay the case: most judges are not really exposed to voluntarily inhibitting themselves because it's an admission of bias or prejudice...
    *SC Denied Motions to inhibit, unless there's obvious bias on the part of the justice
    First United v. Poro
    F: First United participated in the bidding of San Fernando Airport. Disqualified. Sought reconsideration w/ special committee...denied....filed petition w/ RTC to enjoin implementation of the project. Sought dismissal w/ RTC due to , granted by RTC. Filed special petition for certioari before SC. SC denied. Law provides procedure for appealing. Protest made w/ head of procuring agency. Court action resorted only after protest. R65 petition should be filed w/ RTC
    ...even if SC has power to entertain P4C under R65, law for procurement provides otherwise
    *so procedure ulit
    >ask bidding committee to reconsider award
    >go to head of procurring agency for appeal (e.g. Bid for COMELEC, so head of COMELEC)
    >so appeal to RTC after R65 Petition for Certiorari - GADALEJ
    Exemption: Smartmatic case: elections near, plus involves big amount!
    First Lepanto Ceramics Case
    WON petitions for review of decisions of Board of Investments filed w/ CA or SC (both provides basis)?
    H: Petitions for review should be filed to CA in pursuant to Circular, in implementation of BP 129 - declog the dockets of SC
    Circular made a procedural appeal but did not change the right of appeal to losing parties for cases decided by BOI
    *note of consti provision that you cannot increase the jurisdiction of the SC w/o its consent
    ...what about the decrease of jurisdiction? Does it need SC consent?
    Ampong v. CSC
    WON Judiciary has administrative supervision over all its personnel
    F: Sarah Ampong emplolyed as court interpreter in Sarangani. But when she was a teacher, she took exam in behalf of another person (so before she was a court interpreter; she was then under DECS)!
    H: CSC has jurisdiction  then but based on estoppel
    CA
    CGP Transport
    F: Party gave a loan to CGP, eventually was not able to pay. Party able to foreclose mortgaged property of CPG. CPG can't redeem so party filed case for issuance of writ of possession of said property. CGP, in connection w/ another case, said that writ of possession cannot be granted because of writ of injunction....Party elevated case to SC. SC remanded it to CA so that questions of fact may be threshed out. CA ruled against CGP. So hence, this case. CGP alleges now that CA should have not entertained this case because questions of fact pa
    H: CA did not err, under R44.15: questions  of law or fact could be entertained by CA
    ...further, cases were on appeal which are w/n jurisdiction of CA ...how relate to provision of constitution that if QUESTION OF PURELY OF LAW, go straight to SC. BUT SC remanded it back to CA. WHY: The determination of WON the question involved is a question of law is final - the questions  of fact may not be tackled so safe to go to CA if you're not sure!
    Examples of purely question of law: jurisdiction of the courts, interpretation of laws...
    ...plus, the SC may say that there is a violation of hierarchy of laws
    CTA Cases coming from BOC, BIR, Tariff commission would end up to CTA; then CTA > SC [RA 9282]
    SB
    Straight to SC: R45
    -always associated w/ criminal cases involving public officers and private persons charged in conspiracy w/ public officers
    -cases which undergo RTC first: below SG 27; then RTC to SB
    -civil cases: does it have jurisdiction aside from the civil cases with the criminal case: IN forfeiture of ill gotten wealth  - not only w/ civil cases involving Marcos and their cronies
    RTC
    Incapable of pecuniary estimation
    Ongkingco v. CA Petitioner filed application w/ DENR for title of parcel of land. Respondents protested application because they claim that they inherited land from father. DENR ruled ifo respondents. Respondents filed w/ CENRO for survey. CENRO allowed survey but were stopped from doing so. Resorted first w/ Brgy.
    Now filed w/ RTC case for mandatory injunction. Petitioner filed MTD for lack of jurisdiction - involves possession of land, value of land falls under MTC jurisdiction. But RTC denied MTD: subject matter is actually injunction. Petitioner filed petition for review before CA.
    WON incapable of pecuniary estimation?
    Factors to look at to determine the nature of the action [shet, MCQ daw sabi ni ma'am] 1. material allegations in complaint
    2. Principal relief prayed for
    3. Law in force at the time the action has filed
    -Determine from the relief prayed for if it is capable of pecuniary estimation. If it is not, then incapable of pecuniary estimation! Even if money claims merely incidental  - can still be incapable of pecuniary estimation [cf.Ruby Shelter case: worded case so that it would appear that they were not claiming the land, so incapable of pecuniary estimation]
    In determining jurisdiction: use assessed value
    In determining docket fees: FMV!
    RCP v. CA
    Collection for unclaimed rentals v. Specific performance of lease. Claim for unpaid rentals. MTD saying it's under jurisdictional amount for RTC. RTC denied.
    WON the RTC has jurisdiction over a complaint for breach of contract?
    Discussed how to determine WON The subject matter is incapable of pecuniary estimation:
    BOC: specific performance or rescission
    So in this case, it is for specific performance
    Averments in the complaint merely showed that the respondents  were trying to enforce contract; money claims merely incidental to the contract.
    Recovery of possession
    -MTC has exclusive original jurisdiction in recovery of possession of land (irrelevant of the money involved or the value of the land)
    BUT if you don't comply w/ the 1 year period from date of dispossession, then recovery of possession (unlawful detainer) becomes accion pubiciana w/c should be filed w/ RTC
    Bernardo v. Villegas
    -case for accion publiciana
    -1 year period counted from the time of unlawful possession
    H
    GR: lack of jurisdiction can be raised at any time!
    X: estopped by participation in the proceeding + raised issue late
    *if no statement of assessed value, should raise it as early as the part of the trial courts! To determine basis of jurisdiction!
    Encarnacion v. Amigo
    Accion publiciana
    Case for ejectment initially filed w/ MTC; MTC ruled ifo plaintiff. RTC dismissed case on appeal. CA remanded to RTC
    WON action really involved ejectment case or accion publiciana?
    Demand letter received feb. 12, March 2, ejectment case filed w/ MTC
    SC said that since way back. New transferrees...BASTA RECONNING POINT NOT FROM SENDING OF DEMAND LETTER
    Planters products v. Fertiphil
    Doctrine of operative facts: an unconstitutional law vests no rights. If the law is declared unconstitutional, they are recognized to have taken place. Unless they were done in bad faith, in anticipation of the ruling of unconstitutionality, the court would let it be.
    -so in this case, amount collected by Planters can be kept? There was fraud and bad faith so ignore operative facts!
    *case of LTO of collection of money for stickers for cars: LTO was already told not to collect, but still collected. SC said that the law is unconstitutional and LTO should return the money!
    Landbank
    -RTC acted as special agrarian court.
    Criminal cases involving CARP fall under RTC!  
    Fort Bonifacio
    Why CIAC? CIAC has no jurisdiction over the isuse raised by the petitioner because what is simply being asked is "are claims arising from right as assignee receivable from petitioners?"
    ...petitioner was contending that under NCC, 1311, principle of relativity of contracts...
    SC: assignment took place after the contract was already terminated + claims are simply TPC which are no way ..  Basta HLURB
    TRICORP
    HLURB has jurisdiction
    1. Unsound real estatebusiness practices - what is involved here
    2. Claims involving refund and any other claims brought by buyers of subdivision lots or condominium units against project owners, developers, brokers, etc.
    3. Involving cases that partake of specific performance involving contractual or statutory obligations by buyers of subdivision/condo unit against owners/developers
    Municipality of Pateros
    -boundary dispute between two municipalities!
    H: boundary dispute should be resolved by Sanggunian!Not w/ RTC - see LGC
    Family courts
    -just RTCs appointed as such
    -basta involves families
    -summary proceedings under FC
    Madrinan v. Madrinan:
    -writ of habeas corpuse filed to recover custody of the children
    -filed writ w/ CA
    -Memorandum filed, questioning CA's jurisdiction, saying Family Courts have jurisdiction bsed on RA 8369
    H: Family Courts, CA and SCs have original jurisdiction over habeas corpus petitions
    -concurrent jurisdiction
    -based on AM 03-03-04: Not only family courts but also CA and SC were given expressly concurrent jurisdiction
    -practical consideration: maybe no remedy w/RTC upon transfer of location of the children
    Exception: if there's already been a case filed for declaration of nullity of marriage, which would inveitably involve the question of custody. Any problem as to the custody of children should be filed w/ same court because the court already has jurisdiction over the parties! Maybe made liable for contempt
    Yu v. Yu
    -Custody case over child. Petition for habeas corpus in CA on part of Father. Mother filed w/ RTC  Pasig petition for declaration of nullity of marriage. Mother moved to Pasay, prayed for declaration of nullity in RTC Pasig. Pasay rtc case initiated. ...basta 2 RTCs...
    H: Which between the RTCs has jurisdiction?  PASIG RTC is the proper court. It acquired first the jurisdiction over the issue of custody. A49-50, FC govern case at bar.
    Art. 49: during pendency of action for annulment, in absence of adequate agreement as to the custody of child, court may provide for custody and support of child...
    Art. 50: final judgment shall provide for custody of child, X; if issue already adjudicated in a previous judicial proceeding
     
    COMMERCIAL COURTS RTCs designated as Commercial courts
    -intracorporate controversies: disputes between and among stockholders
    -complaint of stockholder vs. Officer of corp
    -Exercise of appraisal right
    Not all cases that seem to involve share of stock mean intracorporate dispute...
    Oscar Reyes v. RTC
    -Oscar and Rodrigo. By the time the case was filed, Oscar owned most of the shares. When their mother died, most of the shares of stock allegedly went to Oscar. Rodrigo filed action in SEC vs. Oscar for accounting of shares of stock of the mother + father; plus distribution of shares of stock among heirs  of mother
    -ra 8799 went into effect: case forwarded to RTC which had jurisdiction
    Motion to declare filed by Oscar as harassment suit - not a ground for dismissal!
    Tests to determine if intracorporate or not:
    1. Fraudulent devices or schemes
    2. Intracorporate controversy:
      1. Relationship test: union glass v. SEC: the dispute must be between
        1. Corp and public
        2. Corp and SH or officers
        3. Corp and state - franchise
      1. Nature of controversy test
    -WON the controversy/dispute concerns primarily the enforcement of rights under Corpo code and other intracorporate regulations:
    H:not intracorporate
    1. Not suing out of the relation as SHs, but as brothers!
    2. Even though the complaint asked for the accounting of the shares of the deceased parents, it was only incidental to the maid remedy - which is for the settlement of the estate of the spouses
    Note: Because of the FRIA, some cases would not hold true afterwards
    MTC
    SPs fajardo case
    -a tenant
    H: primary jurisdiction of DAR if tenant, agrarian reform cases - DARAB
    ...unlawful detainer of tenant - if agricultural tenant, still DARAB
    Vda de Barrera
    When complainants filed for recovery of land...
    Ownership as affirmative defense
    H: assessed value
    Brgy Lupon
    -case undergo brgy lupon proceedings if both parties are residing in same brgy
    Aquino v. Aure
    -noncompliance w/ requirement amounts to failure to comply with condition precedent. It could also be an exhaustion of administrative cases. Either way, it was still prematurity.
    -if party fails to raise noncompliance w/ compliance w/ brgy lupon in answer or MTD, then deemed as waived
    -so here, court ordered undergo brgy conciliation...so is the case suspended or dismissed w/o prejudice?
    DISMISSED w/o prejudice
    Lee wee v. De Castro
    - unpaid rentals involved, turned out to vacation in the end
    -2 story building in alaminos. Originally agreed to P9k monthly rental. Effective Oct. 1...raised rents...but the lessee refused to pay the increased rent. They underwent lupon proceedings, but failed to conciliate, certification filed by brgy. Demand to vacate, refused to vacate, complaint for ejectment before MTC.
    H: BRGY conciliation, w/ regard to rental dispute, sufficiently complies for the filing of action for ejectment - rental disputes necessarily includes lease disputes, possession disputes...
    Xxx
    RULES OF COURT Liberal application of rules - most of the time applied by SC
    ...
    Makati case: filed late 1 day - notice of appeal fresh period...did not grant because of the failure to appear many times in RTC
    Rural bank of seven lakes: why seven lakes...located in San Pablo Laguna
    -won rule requiring verification under SEC rules of procedure
    H: Not relaxed. Relaxed only to relieve litigant ...
    There's also the repeated absence of the respondent in this case and her counsel in appearing before SEC
    Note: ROC of Civil procedure made in 1997...consolidate rulings of SC and put them there
    R2: COA
    Determined first...
      Ceroferr v. CA: elements of COA:
    1. Right of plaintiff
       
    1. Right of plaintiff
    1. Obligation to Respect right
    2. Act or omission of defendant in violation of said right

    Camarines Sur Electric v. Aquino
    -WON the person who is not a party to a contract could sue either of the contracting parties? YES
    -in this case, subscriber of electric cooperative
    WON there was a contract bet. Parties not necessary in determining WON there was a COA. Matter of defense only .
    Vinzons-Chato v. Fortune
    Are public officers personally liable for alleged wrongdoings for acts done when they are in publc service?
    This case, NCC applied - A32
    Admin code: civil liability of public officer: owing to pubic and owing to individual - liable only if owing to individual
    Here: sufficient COA
    ---upon MR: no COA otherwise chilling effect if always threat of A32
    BPI: only 1 COA Caltex: as many cases as there are many REM for each accounts - so no splitting of COA
    UCPB: splitting of COA not allowed but Joinder allowed
    First case: to enjoin the foreclosure sale (RTC) - dismissed; foreclosure proceeded
    2nd case: for annulment, damages, attacking the validity of the loan and violation of truth in lending act
    Jurisdiction w/ MTC - penalty shall not exceed P2k
    Action to declare interest rates as illegal...w/n jurisdiction of RTC so proper for adjudging bank liable for violation of the law
    -supposing ALL joined COA for collection of money - not exceeding P2ook...aggregate amount claimed
    PARTIES- R3
    A case cannot be filed if plaintiff not real party in interest...
    All parties should be the real party in interest - have a connection to the COA
    Carlos v. Sandoval
    -declaration of nullity of marriage so that the brother could inherit
    H: Real party in interest is one who stands to benefit from judgment of the case
    -Teofilo would be a real party in interest if nephew proven to be an adopted son
    -cannot impune nullity of marriage if not real pary in interest...
    Estreller v. Ysmael
    Filed case for recovery of possession of property entered into and occupied by petitioners. Petitioners refused to vacate premises. Alleged no personality to file suit.
    H: Ysmael coowner, alvarez purchased portion of th eproperty, as evidenced by documents...so both real party of interest. Any of the coowners could file suit to recover property co-owned...all for thebenefit of the coowners
    Carandang..all coowners are deemed real party in interest in actions to recover possession
    Where the coowner does not recognize the existence of coownership, cannot act for the other coowners but all coowners should be included in the suit!
    Indispensable parties
    De Galicia v. Mercado: businesspartners and cosignatories in a check payable to cash. Onerediscounted the check ifo Mercado. Mercado's claim for insufficiency of funds denied. Mercado sued both. De Galicia sued only Mercado, not his partner.
    H: Nonjoinder of indispensable party - the one who rediscounted the check. Signatory of the check, but also the one privy to the agreement w/ Mercado. Any final determination to thecase would not be final. Filed case vs. Mercado in an attempt to affect the outcome of the case
    Lagunila v. Velasco
    -Siblings bought property. Upon death of some of the siblings, the remaining siblings executed a deed of extrajudicial settlement and transfer to one of the heir...annulment of deed and damages filed by the heirs of the sibling not included in the executed deed.The parties were not the sole heirs, they have right to represent their father!
    H: Pedro is an indispensable party because at the time the extrajudicial settlement adn deed of donation were made ifo him, he was also a co-owner of the property. Although on its face, Pedro is an indispensable party, they need to remand it to lower courts to give Pedro opportunity to be made a party to the case and give him due process. Any decision that would be made w/o inclusion of indispensable party would be null and void.l
    Cf: necessary prty:nonicnlusion would not lead to dismissal of the case/making it null and void.
    ...but may constitute a waiver on the party not including the necessary party as to his claims with the necessary party...
    Marmo v. Anacay
    -MTD filed on the filed that the children...
    ...GR...
    Leonis Navigation
    WON the nonjoinder of indispensable parties is ground for dismissal of function
    Chief engr of vessel contracted colon cancer. While alive, filed complaint w/nlrc for money claims. NLRC granted it. Both parties appealed decision of la becuase not satisfied w/ dec. Nlrc dimissed petition and mr and filed p4c under 65 w/ca. CA dismissed + petitioner did not include spouse of plaintiff who died
    H: Although the wife of the deceased petitioner was an indispensable party, not ground of dismissal...refusal to include the substitutes is the ground for the dismissal. [so note the point in time when the dismissal proper]