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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
September-2000 Jurisprudence                 

  • G.R. No. 117690 September 1, 2000 - PEOPLE OF THE PHIL. v. ALBERTO DANO

  • G.R. No. 128567 September 1, 2000 - HUERTA ALBA RESORT INC. v. COURT OF APPEALS, ET AL.

  • A.M. No. RTJ-00-1582 September 4, 2000 - COB C. DE LA CRUZ v. RODOLFO M. SERRANO

  • G.R. No. 134763 September 4, 2000 - PEOPLE OF THE PHIL. v. WILFREDO RIGLOS, ET AL.

  • G.R. No. 137785 September 4, 2000 - NAPOCOR v. VINE DEVELOPMENT CORPORATION, ET AL.

  • G.R. No. 139282 September 4, 2000 - ROMEO DIEGO v. SANDIGANBAYAN, ET AL.

  • G.R. No. 90828 September 5, 2000 - MELVIN COLINARES, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 124077 September 5, 2000 - PEOPLE OF THE PHIL. v. ADORACION SEVILLA ET AL.

  • G.R. No. 129239 September 5, 2000 - PEOPLE OF THE PHIL. v. PAUL LAPIZ

  • G.R. Nos. 131848-50 September 5, 2000 - PEOPLE OF THE PHIL. v. RODOLFO VILLARAZA

  • G.R. No. 139853 September 5, 2000 - FERDINAND THOMAS M. SOLLER v. COMELEC, ET AL.

  • A.M. No. MTJ-00-1307 September 6, 2000 - MANUEL BUNYI, ET AL. v. FELIX A. CARAOS

  • A.M. No. MTJ-00-1309 September 6, 2000 - FREDESMINDA DAYAWON v. MAXIMINO A. BADILLA

  • A.M. No. O.C.A.-00-01 September 6, 2000 - JULIETA B. NAVARRO v. RONALDO O. NAVARRO, ET AL.

  • G.R. No. 129220 September 6, 2000 - PEOPLE OF THE PHIL. v. BERNIE JAMON FAUSTINO

  • G.R. No. 131506 September 6, 2000 - PEOPLE OF THE PHIL. v. RODEL DIZON

  • G.R. No. 133625 September 6, 2000 - REMEDIOS F. EDRIAL ET AL. v. PEDRO QUILAT-QUILAT, ET AL.

  • A.M. No. MTJ-00-1314 September 7, 2000 - CLODUALDO C. DE JESUS v. RODOLFO D. OBNAMIA JR.

  • G.R. No. 121802 September 7, 2000 - GIL MACALINO, JR. v. PEOPLE OF THE PHIL., ET AL.

  • G.R. No. 126036 September 7, 2000 - PEOPLE OF THE PHIL. v. PASCUAL BALINAD, ET AL.

  • G.R. No. 128158 September 7, 2000 - PEOPLE OF THE PHIL. v. ARMANDO JUAREZ, ET AL.

  • G.R. No. 137431 September 7, 2000 - EDGARDO SANTOS v. LAND BANK OF THE PHIL.

  • G.R. No. 143385 September 7, 2000 - LEARNING CHILD, ET AL. v. ANNIE LAZARO, ET AL.

  • A.M. Nos. P-93-990 & A.M. No. P-94-1042 September 8, 2000 - TERESITO D. FRANCISCO v. FERNANDO CRUZ

  • G.R. No. 125167 September 8, 2000 - PRODUCERS BANK OF THE PHIL, ET AL. v. BANK OF THE PHIL. ISLANDS, ET AL.

  • G.R. No. 137714 September 8, 2000 - PEOPLE OF THE PHILS.. v. ROBERTO BANIGUID

  • A. M. No. P-99-1309 September 11, 2000 - FRANCISCO B. IBAY v. VIRGINIA G. LIM

  • G.R. No. 137857 September 11, 2000 - REPUBLIC OF THE PHIL. v. SANCHO MAGDATO

  • G.R. No. 115054-66 September 12, 2000 - PEOPLE-OF THE PHILIPPINES v. VICENTE MENIL

  • G.R. No. 138201 September 12, 2000 - FRANCISCO BAYOCA, ET AL. v. GAUDIOSO NOGALES, ET AL.

  • G.R. No. 123111 September 13, 2000 - PEOPLE OF THE PHIL. v. JIMMY DAGAMI

  • G.R. No. 127444 September 13, 2000 - PEOPLE OF THE PHIL. v. TIRSO D. C. VELASCO, ET AL.

  • G.R. No. 126402 September 13, 2000 - PEOPLE OF THE PHIL. v. LITO ROSALES

  • G.R. No. 126781 September 13, 2000 - PEOPLE OF THE PHIL. v. CALIXTO ZINAMPAN, ET AL.

  • G.R. No. 133918 September 13, 2000 - PEOPLE OF THE PHIL. v. TIBOY ALBACIN

  • G.R. No. 133981 September 13, 2000 - PEOPLE OF THE PHIL. v. HILARION BERGONIO, JR.

  • A.M. No. 00-1281-MTJ. September 14, 2000 - OFFICE OF THE COURT ADMINISTRATOR v. SALVADOR B. MENDOZA

  • G.R. Nos. 104637-38 & 109797 September 14, 2000 - SAN MIGUEL CORPORATION, ET AL. v. SANDIGANBAYAN, ET AL.

  • G.R. No. 126368 September 14, 2000 - PEOPLE OF THE PHIL. v. JOHNNY CALABROSO, ET AL.

  • G.R. No. 129208 September 14, 2000 - PEOPLE OF THE PHIL. v. EDGARDO ALORO

  • G.R. No. 131680 September 14, 2000 - SUBIC BAY METROPOLITAN AUTHORITY, ET AL. v. UNIVERSAL INTERNATIONAL GROUP OF TAIWAN, ET AL.

  • G.R. No. 140269-70 September 14, 2000 - PHIL. CARPET EMPLOYEES ASSOCIATION ET AL. v. PHIL. CARPET MANUFACTURING CORP.

  • G.R. Nos. 143351 & 144129 September 14, 2000 - MA. AMELITA C. VILLAROSA v. HRET, ET AL.

  • G.R. No. 109269 September 15, 2000 - BAYER PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 134266 September 15, 2000 - PEOPLE OF THE PHIL. v. MELENCIO BALI-BALITA

  • G.R. Nos. 135288-93 September 15, 2000 - PEOPLE OF THE PHIL. v. JESUS GIANAN

  • G.R. No. 130038 September 18, 2000 - ROSA LIM v. PEOPLE OF THE PHIL.

  • G.R. No. 132603 September 18, 2000 - ELPIDIO M. SALVA, ET AL. v. ROBERTO L. MAKALINTAL, ET AL.

  • G.R. No. 134651 September 18, 2000 - VIRGILIO JIMENEZ, ET AL. v. PATRICIA, INC.

  • G.R. No. 134730 September 18, 2000 - FELIPE GARCIA v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 133373-77 September 18, 2000 - PEOPLE OF THE PHIL. v. FAUSTINO CAMPOS

  • G.R. NO. 140268 September 18, 2000 - PEOPLE OF THE PHIL. v. JOSE LLANES, ET AL.

  • G.R. No. 141471 September 18, 2000 - COLEGIO DE SAN JUAN DE LETRAN v. ASSOC. OF EMPLOYEES AND FACULTY OF LETRAN, ET AL.

  • G.R. No. 141787 September 18, 2000 - MANUEL H. AFIADO, ET AL. v. COMELEC

  • G.R. No. 142038 September 18, 2000 - ROLANDO E. COLUMBRES v. COMELEC, ET AL.

  • G.R. Nos. 136149-51 September 19, 2000 - PEOPLE OF THE PHIL. v. WALPAN LADJAALAM

  • G.R. No. 137659 September 19, 2000 - PEOPLE OF THE PHIL. v. AMADEO TRELLES

  • G.R. No. 114348 September 20, 2000 - NATIONAL IRRIGATION ADMINISTRATION v. COURT OF APPEALS, ET AL.

  • G.R. No. 131927 September 20, 2000 - PEOPLE OF THE PHIL. v. DAVID BANAWOR, ET AL.

  • G.R. No. 135516 September 20, 2000 - PEOPLE OF THE PHILS. v. NEIL DUMAGUING

  • G.R. No. 132547 September 20, 2000 - PEOPLE OF THE PHIL. v. ERNESTO ULEP

  • G.R. No. 117417 September 21, 2000 - MILAGROS A. CORTES v. COURT OF APPEALS, ET AL.

  • G.R. No. 120747 September 21, 2000 - VICENTE GOMEZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 128990 September 21, 2000 - INVESTORS FINANCE CORP. v. AUTOWORLD SALES CORP.

  • G.R. No. 136396 September 21, 2000 - PEOPLE OF THE PHIL. v. ROLANDO ZASPA, ET AL.

  • G.R. No. 136453 September 21, 2000 - PETRITA Y. BONILLA v. COURT OF APPEALS, , ET AL.

  • G.R. No. 137571 September 21, 2000 - TUNG CHIN HUI v. RUFUS B. RODRIGUEZ, ET AL.

  • A.M. No. P-00-1424 & MTJ-00-1316 September 25, 2000 - REYNALDO B. BELLOSILLO v. DANTE DE LA CRUZ RIVERA

  • G.R. No. 129055 September 25, 2000 - PEOPLE OF THE PHIL. v. EDGAR BACALSO

  • G.R. No. 129296 September 25, 2000 - PEOPLE OF THE PHlL. v. ABE VALDEZ

  • G.R. No. 132078 September 25, 2000 - PEOPLE OF THE PHIL. v. ARTEMIO BERZUELA

  • G.R. No. 133465 September 25, 2000 - AMELITA DOLFO v. REGISTER OF DEEDS FOR THE PROVINCE OF CAVITE, ET AL.

  • A.M. No. RTJ-93-986 September 26, 2000 - EDUARDO C. DE VERA v. WILLIAM LAYAGUE

  • G.R. No. 122110 September 26, 2000 - PEOPLE OF THE PHIL. v. FERIGEL OLIVA

  • G.R. No. 135630 September 26, 2000 - INTRAMUROS TENNIS CLUB v. PHIL. TOURISM AUTHORITY (PTA)

  • G.R. Nos. 136012-16 September 26, 2000 - PEOPLE OF THE PHIL. v. ULDARICO HONRA, JR.

  • G.R. No. 138887 September 26, 2000 - PEOPLE OF THE PHIL. v. JURRIE DUBRIA

  • G.R. No. 142392 September 26, 2000 - DOMINGA A. SALMONE v. EMPLOYEES’ COMPENSATION COMMISSION, ET AL.

  • A.M. No. MTJ-00-1319 September 27, 2000 - ROLANDO A. SULLA v. RODOLFO C. RAMOS

  • A.M. No. RTJ-99-1447 September 27, 2000 - LEONARDO DARACAN, ET AL. v. ELI G.C. NATIVIDAD

  • G.R. No. 109760 September 27, 2000 - PEOPLE OF THE PHILS. v. PABLO F. EMOY, ET AL.

  • G.R. No. 122498 September 27, 2000 - PEOPLE OF THE PHILS. v. ELMEDIO CAJARA

  • G.R. No. 133946 September 27, 2000 - PEOPLE OF THE PHIL. v. OSCAR NOGAR

  • G.R. Nos. 97138-39 September 28, 2000 - PEOPLE OF THE PHIL. v. EFREN TEMANEL, ET AL.

  • G.R. No. 132311 September 28, 2000 - PEOPLE OF THE PHIL. v. MINA LIBRERO

  • G.R. No. 132725 September 28, 2000 - PEOPLE OF THE PHIL. v. ARMANDO QUILATAN

  • G.R. No. 136843 September 28, 2000 - PEOPLE OF THE PHIL. v. PEDRO ABUNGAN, ET AL.

  • G.R. No. 138054 September 28, 2000 - ROSENDO C. CARTICIANO, ET AL. v. MARIO NUVAL

  • G.R. No. 138503 September 28, 2000 - ROBERTO FERNANDEZ v. PEOPLE OF THE PHIL., ET AL.

  • A.M. No. 00-3-01-CTA September 29, 2000 - RE: JUDGE ERNESTO D. ACOSTA

  • A.M. No. RTJ-00-1589 September 29, 2000 - JEANET N. MANIO v. JOSE ENER S. FERNANDO

  • G.R. No. 106401 September 29, 2000 - FLORENTINO ZARAGOZA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 123299 September 29, 2000 - PEOPLE OF THE PHIL. v. SANTIAGO CARUGAL, ET AL.

  • G.R. Nos. 124671-75 September 29, 2000 - PEOPLE OF THE PHIL. v. LINDA SAGAYDO

  • G.R. No. 126048 September 29, 2000 - PEOPLE OF THE PHIL v. RODEL SAMONTE

  • G.R. No. 126254 September 29, 2000 - PEOPLE OF THE PHIL. v. RONALDO PONCE

  • G.R. No. 129507 September 29, 2000 - CHAN SUI BI, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 130785 September 29, 2000 - PEOPLE OF THE PHILS. v. RONALD VITAL

  • G.R. No. 131492 September 29, 2000 - ROGER POSADAS, ET AL. v. OMBUDSMAN, ET AL.

  • G.R. No. 131813 September 29, 2000 - PEOPLE OF THE PHIL. v. MARIO ABENDAN

  • G.R. No. 133443 September 29, 2000 - PEOPLE OF THE PHIL. v. DOMINADOR DE LA ROSA, ET AL.

  • G.R. No. 134100 September 29, 2000 - PURITA ALIPIO v. COURT OF APPEALS, ET AL.

  • G.R. No. 135382 September 29, 2000 - PEOPLE OF THE PHIL. v. LOURDES GAMBOA

  • G.R. No. 135457 September 29, 2000 - PEOPLE OF THE PHIL. v. JOSE PATRIARCA, ET AL.

  • G.R. No. 135548 September 29, 2000 - FAR EAST BANK AND TRUST COMPANY v. COURT OF APPEALS, ET AL.

  • G.R. No. 135981 September 29, 2000 - PEOPLE OF THE PHIL. v. MARIVIC GENOSA

  • G.R. Nos. 137379-81 September 29, 2000 - PEOPLE OF THE PHILS. v. ARTURO GARCIA

  • G.R. No. 139910 September 29, 2000 - PHILIPPINE COCONUT AUTHORITY v. CORONA INTERNATIONAL

  • G.R. No. 141060 September 29, 2000 - PILIPINAS BANK v. COURT OF APPEALS, ET AL.

  • G.R. No. 141959 September 29, 2000 - JUANITA NARZOLES, ET AL. v. NLRC, ET AL.

  •  





     
     

    G.R. No. 137857   September 11, 2000 - REPUBLIC OF THE PHIL. v. SANCHO MAGDATO

     
    PHILIPPINE SUPREME COURT DECISIONS

    THIRD DIVISION

    [G.R. No. 137857. September 11, 2000.]

    REPUBLIC OF THE PHILIPPINES, represented by ASSET PRIVATIZATION TRUST, Petitioner, v. The Heirs of SANCHO MAGDATO, represented by NELSON M. FERRIOL, Respondents.

    D E C I S I O N


    PANGANIBAN, J.:


    In an action for quieting of title, recovery of possession and ownership of a parcel of land, and damages, the mortgagee of the equipment and other improvements located on the land is not an indispensable party, if the said mortgagee does not claim any right to ownership or possession of such real estate. Hence, the non-joinder of the mortgagee in such suit does not justify an annulment of the judgment thereon on the ground of extrinsic fraud.chanrob1es virtua1 1aw 1ibrary

    The Case


    Before us is a Petition for Review under Rule 45 of the Rules of Court. The Petition assails the January 18, 1999 Resolution 1 of the Court of Appeals (CA) in CA-GR SP No. 49976, which reads as follows:jgc:chanrobles.com.ph

    "The petition for annulment of judgment in Civil Case No. V-1040 of Branch 81 of the Regional Trial Court of Romblon raising essentially intrinsic fraud and factual issues, in addition, the Court resolved to DISMISS the petition." 2 (sic)

    Also assailed is the May 5, 1999 CA Resolution, 3 which denied the Motion for Reconsideration.

    The trial court ruling 4 sought to be annulled by petitioner was issued by the Regional Trial Court (RTC) of Romblon, Romblon on January 31, 1994 in Civil Case No. V-1040. The case — for quieting of title, recovery of possession and ownership, and damages — was entitled "Heirs of Sancho Magdato, herein represented by Nelson M. Ferriol[,] v. Imperial Marble and Exploration Corporation and Ramon S. Dino, President and General Manager; Filipinas Marble Corporation and Vicente D. Millora, President and/or Chairman of the Board." It disposed as follows: 5

    "WHEREFORE, judgment is rendered:chanrob1es virtual 1aw library

    a) Ordering the defendants to vacate lot 898 and restoring plaintiff in possession thereof as true and lawful owner of the same;chanrob1es virtua1 1aw 1ibrary

    b) Ordering the defendants jointly and severally to pay plaintiff the rentals due on the property from January 1970 up to December 1993 in the amount of seventeen thousand six hundred two pesos and thirty six centavos (P17,602.36), and the amount of three hundred ninety six pesos and ninety centavos (P396.90) every six months thereafter until the plaintiff is restored in possession of the land; with interest on both amounts at the legal rate from January 15, 1990 until fully paid;

    c) Ordering the defendants jointly and severally to pay plaintiff moral damages in the sum of thirty thousand pesos (P30,000.00) and the amount of fifty thousand pesos (P50,000.00) as exemplary damages; and ten thousand pesos (P10,000.00) as attorney’s fees."cralaw virtua1aw library

    The Facts


    The following undisputed facts may be gleaned from the pleadings of the parties.

    The land in question was Lot No. 898 of the Romblon Cadastre with a total area of 10,891 square meters. It was originally leased from Sancho Magdato by Cebu Portland Cement Corporation (CEPOC), a government-owned and controlled corporation.

    In 1961, CEPOC sold its buildings, equipment, machinery and other structures to Filipinas Marble Corporation (FILMARCO), which continued paying rentals to Magdato. FILMARCO, in turn, subleased the premises to- Imperial Marble & Exploration Corporation (IMEC).

    Subsequently, FILMARCO obtained a loan in the amount of US$5 million from the Development Bank of the Philippines (DBP). As a security, it executed a chattel mortgage over its properties on the land. In 1987, DBP transferred to the Asset Privatization Trust (APT) its financial claim against FILMARCO. In 1990, APT placed a caretaker in the area to oversee the safekeeping of the mortgaged properties.

    When FILMARCO failed to pay rentals, the heirs of Sancho Magdato filed before the RTC Civil Case No. V-1040 for quieting of title, recovery of possession and ownership of the land, and damages against FILMARCO and IMEC.

    For failure to file an answer to the Complaint, both FILMARCO and IMEC were declared in default. Respondents were then allowed to present evidence ex parte. Thereafter, the trial court rendered its assailed Decision, which became final and executory when neither FILMARCO nor IMEC appealed.

    APT allegedly learned of the suit only on December 20, 1994 when the Writ of Execution was served on its caretakers at the leased premises. The caretakers refused to vacate the premises.

    Respondent narrated the subsequent events in this wise: "A series of motions and manifestations were filed by respondents and APT. Respondents moved to have the APT-appointed caretakers cited in contempt; this was denied by the trial court. On the other hand, APT asked for quashal of the Writ on ground that it was not a party to the case and could, thus, not be forced to comply with the Writ of Execution; furthermore, APT asked also for the pull-out and removal of respondents from the property. The first prayer of APT was not granted by the trial court even as it confirmed that APT was not party to the case; the latter prayer of APT was denied by the trial court. A motion for reconsideration by APT of the denial of the latter relief proved fruitless as the trial court remained steadfast in its decision to confirm respondents as the owners of the property."cralaw virtua1aw library

    On December 21, 1998, APT filed before the Court of Appeals a Petition for the annulment of the RTC Decision. As earlier stated, the CA resolved to dismiss the Petition.chanrob1es virtua1 1aw 1ibrary

    Hence, this recourse to this Court. 6

    The Issues


    In its Memorandum, petitioner submits the following issues for our consideration: 7

    I


    "Whether or not sufficient ground exists for the annulment of the trial court’s decision dated January 31, 1994 due to extrinsic fraud.

    II


    "Whether or not APT is an indispensable party and should have been impleaded in Civil Case No. V-1040.

    III


    "Whether or not the decision dated January 31, 1994 of the trial court may be enforced against APT despite the fact that APT [was] not a party in Civil Case No. V-1040.

    IV


    "Whether or not APT was denied due process in the proceeding before the trial court held in Civil Case No. V-1040.

    V


    "Whether or not private respondents heirs of Sancho Magdato were able to prove their ownership over Lot 898, CAD 311-D, C-1 of the Romblon Cadastre."cralaw virtua1aw library

    In the main, petitioner asks the Court to resolve two issues: (a) whether the RTC Decision should be annulled due to extrinsic fraud and (b) whether the respondents were able to prove ownership of the parcel of land.

    The Court’s Ruling


    The Petition is not meritorious.

    First Issue:chanrob1es virtual 1aw library

    Extrinsic Fraud

    Section 2, Rule 47 of the 1997 Rules of Court, provides that the annulment of a judgment may "be based only on the grounds of extrinsic fraud and lack of jurisdiction." 8 There is extrinsic fraud when "the unsuccessful party had been prevented from exhibiting fully his case, by fraud or deception practiced on him by his opponent, as by keeping him away from court, . . . or where the defendant never had knowledge of the suit, being kept in ignorance by the acts of the plaintiff; . . ." 9

    In this case, petitioner contends that there was extrinsic fraud because respondents did not implead it as a defendant in the civil action," [d]espite their knowledge that the building and equipment of FILMARCO standing on the subject property were mortgaged to DBP/APT." 10

    We disagree. A close examination of the records and the arguments presented shows that there was no reason for respondents to implead petitioner before the trial court.

    Petitioner Not an

    Indispensable Party

    Petitioner contends that it should have been impleaded as an indispensable party, 11 because it was the "transferee of [DBP’s] FILMARCO account which includes the leasehold rights and mortgage over the subject properties." 12

    The precise nature of the interest of APT was explained more clearly in its other pronouncements. Hence, in its Comment 13 to the Motion to declare its caretakers in contempt of court, it averred that what had been transferred to it by the DBP was the latter’s "financial claim" against FILMARCO.

    This assertion was reiterated in the February 16, 1999 letter 14 addressed to a Malacañang official, 15 in which Renato B. Valdecantos, APT chief executive trustee, affirmed that what had been transferred by DBP to APT was the bank’s "financial claim" against FILMARCO. Pertinent portions of the letter are reproduced hereunder:jgc:chanrobles.com.ph

    "On February 3, 1987, Administrative Order No. 14 was issued (Approving the Identification of and Transfer to the National Government of Certain Assets and Liabilities of the Development Bank of the Philippines and the Philippine National Bank) as implemented by the Deed of Transfer dated February 27, 1987, executed by and between DBP and the Government of the Republic of the Philippines, whereby DBP’s rights, title and interest over the financial claim against Filipinas Marble Corporation (FILMARCO) were transferred to the National Government.

    "On February 27, 1987, the Trust Agreement was executed by and between the National Government and the APT under which the former constituted the latter as its trustee over the Trust Properties defined therein, among which [was] the above-mentioned financial claim against FILMARCO.

    "Thus, what was transferred by DBP to the National Government through the APT, consisted merely of the financial claim against FILMARCO. APT, even up to the present, remains to be a mere director, or, in other words, the holder of a financial claim against FILMARCO." 16 (Emphasis found in the original.)chanrob1es virtua1 1aw 1ibrary

    More significant, Valdecantos also averred that APT was, in effect, a mere creditor of FILMARCO and was not the owner or possessor of the said mortgaged property. In his words:jgc:chanrobles.com.ph

    "Since the National Government/APT is not the owner of the subject properties, it was explained to Mr. Ferriol that APT could not immediately exercise the rights of an owner, or more particularly, allow the unilateral "turn-over" of the properties which he wants the APT to do, which rights are vested only [in] the owners of property under Article 428 of the New Civil Code of the Philippines." 17

    Furthermore, he rejected the claim of Nelson Ferriol, respondents’ representative, that the equipment had been "transferred to APT."cralaw virtua1aw library

    "The allegation of Mr. Ferriol, to wit:chanrob1es virtual 1aw library

    ‘. . . that Filipinas Marble Corporation[’s] properties ha[d] been transferred [to] the APT and the latter assumed full control including liabilities. Total unpaid rentals of FILMARCO to the Heirs of Sancho Magdato is approximately P4,243,443.16 as against FlLMARCO’s property valued at P277,550.00 only. APT refused to pay us the amount due to the Heirs of Sancho Magdato for dubious reasons.’

    is without basis. APT should not and can not be held liable to settle other separate liabilities of FILMARCO." 18 (Emphasis supplied.)

    From the foregoing, it is quite clear that APT does not claim to be either the owner or the possessor of the land or of the FILMARCO equipment thereon. APT was merely the creditor of FILMARCO.

    Because APT has no interest in the parcel of land, it does not stand to be benefitted or injured by the suit before the trial court, which, as earlier noted, sought the recovery of possession and ownership only of the land, not of the mortgaged property located thereon.

    The concern of APT was to collect the loan, which had been acquired by FILMARCO from DBP and secured by a mortgage over FILMARCO’s equipment. That interest has not been affected by the action seeking the recovery of the land on which the property is located. Verily, the ownership and the possession of the land are immaterial to APT’s claim against the equipment.chanrob1es virtua1 1aw 1ibrary

    That the action for recovery of possession necessarily includes the removal of equipment located thereon does not make APT an indispensable party. As noted earlier, FILMARCO, not APT or DBP, was the owner of the said equipment. Hence, respondents acted correctly in impleading FILMARCO, not APT or DBP. Certainly, if the claim of APT is adversely affected by the removal or transfer of the property to another place, it should proceed against FILMARCO, not against respondents. Such transfer or removal is the concern of FILMARCO, not the respondents. In any event, it should be underscored that the civil action seeks the recovery of the land, not of the equipment thereon.

    In sum, the Court finds that petitioner failed to show substantial interest in the civil action which would render it an indispensable party. Accordingly, there was no reason for respondents to implead it as defendant before the trial court. Hence, its non-joinder does not constitute an extrinsic fraud.

    Second Issue:chanrob1es virtual 1aw library

    Ownership of the Land

    Petitioner also contends that respondents failed to prove ownership of the disputed parcel of land. It avers that the appellate court failed to consider the alleged defects in the respondents’ testimonial and documentary evidence.

    This argument is bereft of merit. Petitioner is here seeking the annulment of a trial court judgment. Such recourse is based only on extrinsic fraud and lack of jurisdiction. 19 Because it is not an appeal, the correctness of the judgment is not in issue here. Accordingly, there is no need to address each error allegedly committed by the trial court.

    WHEREFORE, the Petition is DENIED and the assailed Resolutions AFFIRMED.

    SO ORDERED.chanrob1es virtua1 1aw 1ibrary

    Melo, Vitug, Purisima and Gonzaga-Reyes, JJ., concur.

    Endnotes:



    1. Written by Justice Teodoro P. Regino, with the concurrence of Justices Cancio C. Garcia (Division chairman) and Conrado M. Vasquez Jr. (member).

    2. Rollo, p. 33.

    3. Rollo, p. 34.

    4. Written by Judge Placido C. Marquez.

    5. RTC Decision, p. 26; rollo, p. 150.

    6. The case was deemed submitted for resolution on December 8, 1999, upon receipt by this Court of the petitioner’s Memorandum signed by Solicitor General Ricardo P. Galvez, Assistant Solicitor General Fernanda Lampas Peralta and Solicitor Norma B. Cajulis. Filed earlier on November 17, 1999, was respondents’ Memorandum, signed by Atty. Theodore O. Te of Sanidad Abaya Te Viterbo Enriquez & Tan.

    7. Petitioner’s Memorandum, pp. 9-10; rollo, pp. 276-277.

    8. Alarcon v. CA, GR No. 126802, January 28, 2000; Spouses Isagani Miranda and Miguela Joguilon v. CA, GR No. 114243, February 23, 2000. Cf. Macabingkil v. People’s Homesite and Housing Corporation, 72 SCRA 326, August 17, 1976, in which the Court has recognized that a patently void decision may also be set aside, where mere inspection demonstrates its nullity for want of jurisdiction or noncompliance with due process requirements.

    9. Strait Times v. CA, 294 SCRA 714, 722, August 28, 1998, per Panganiban, J., citing Palanca v. The American Food Manufacturing Co., 24 SCRA 819, August 30, 1968. See also Serna v. CA, 308 SCRA 527, June 18, 1999; Arcelona v. CA, 280 SCRA 20, October 2, 1997.

    10. Petitioner’s Memorandum, p. 11; rollo, p. 278.

    11. An indispensable party is one "without whom no final determination can be had of an action." Section 9, Rule 3 of the Rules of Court. See also Nufable v. Nufable, 309 SCRA 692, July 2, 1999; Uy v. CA, GR No. 120465, September 9, 1999; Zarate v. RTC of Kalibo, Aklan, GR No. 102305, October 13, 1999.

    12. Petitioner’s Memorandum, p. 12; rollo, p. 279.

    13. Annex "K" to the Petition, p. 1; rollo, p. 162.

    14. Annex "1" to the respondents’ Comment; rollo, pp. 242-245.

    15. Atty. Gaudencio Mendoza Jr., assistant executive secretary for legal affairs, Office of the Secretary, Malacañang.

    16. Rollo, pp. 242-243.

    17. Ibid., p. 243-244.

    18. Ibid., p. 243.

    19. Section 2, Rule 47 of the 1997 Rules of Court.

    G.R. No. 137857   September 11, 2000 - REPUBLIC OF THE PHIL. v. SANCHO MAGDATO


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