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BA
FINANCE CORPORATION,
G. R. No. L-61628
December 29, 1982
-versus-
HON.
GREGORIO G. PINEDA,
VASQUEZ, J.:
Private
respondent Antonio Sy was adjudged liable
in favor of the plaintiffs in Civil Case No. 7379 of the Court of First
Instance of Nueva Ecija for damages resulting from a vehicular accident
involving a cargo truck supposedly owned by him. Claiming that the
adverse
decision in said case was due to the mishandling of the same by the
counsel
who represented him therein, he filed on December 1, 1981 Civil Case
No.
43869 before the Court of First Instance of Rizal, which was assigned
to
the sala presided over by the respondent Judge. Named as defendants in
said Civil Case No. 43869 are herein petitioner BA Finance Corporation,
whom private respondent claims to be the real owner of the cargo truck
involved in the accident; the Metro-Taisho Insurance Corporation, which
issued the insurance policy covering the same; Atty. Ireneo Calderon,
the
counsel who represented him in the case filed in the Court of First
Instance
of Nueva Ecija; and Robert Chua, the driver of the other vehicle that
figured
in the accident.
Petitioner BA Finance Corporation was served summons on December 18, 1981. Eleven days later, or on December 29, 1981, petitioner, through counsel, filed a motion for extension of time to file answer and/or motion to dismiss. In an Order dated January 4, 1982, served on petitioner's counsel on January 12, 1982, the respondent Judge gave the petitioner a period of 15 days, counted from January 2, 1982 and to expire on January 18, 1982 (sic) within which to file its answer or motion to dismiss the complaint. On January 13, 1982, petitioner filed a motion to dismiss on the ground that the complaint states no cause of action. In his Order dated March 1, 1982, a copy of which was served on the petitioner on March 8, 1982, the respondent Judge denied the motion to dismiss, for being "devoid of merit." On March 17, 1982, petitioner filed a motion for reconsideration of the Order dated March 1, 1982. On March 24, 1982, petitioner received a copy of private respondent's motion to strike out the petitioner's motion for reconsideration on the alleged ground that the motion for reconsideration was filed out of time. It was argued by counsel for the private respondent that when the petitioner filed its motion to dismiss on January 13, 1982, it had already used 11 days out of the 15 days' extension granted to it by the Court in the Order of January 4, 1982; that having received the Order denying its motion to dismiss on March 8, 1982, the petitioner had only the remainder of 4 days or up to March 12, 1982 within which to file its answer to the complaint; consequently, the filing of the motion for reconsideration on March 17, 1982 was already beyond the reglementary period for filing the answer. In the Order of the respondent Judge dated April 5, 1982, the motion to strike out was granted, and the petitioner was declared in default for having failed to answer the complaint within the reglementary period, and private respondent was allowed to present his evidence ex-parte. On April 19, 1982, the petitioner filed a motion to lift order of default. The order of the respondent Judge dated May 4, 1982, served on the petitioner on May 18, 1982, denied the petitioner's motion to lift order of default and directed the issuance of a pre-trial order for the other defendants who were not declared in default. On May 28, 1982,
the petitioner filed a motion
for reconsideration of the Order dated May 4, 1982. On June 16, 1982,
petitioner received a copy
of an order dated June 10, 1982 setting aside the declaration of
default
of the herein petitioner and ordering it to file its answer to the
complaint
within 15 days from notice thereof. The petitioner had by then, or on
May
11, 1982, already filed its answer. The proceedings taken subsequent thereto are not clear from the record. According to the petitioner, on August 12, 1982, it received an order dated July 14, 1982, which reads as follows:
GREGORIO G. PINEDA Judge [Rollo, pp. 77-78] Petitioner further alleged that on August 31, 1982, it received a copy of the Decision rendered in Civil Case No. 43869 dated August 17, 1982 which orders the defendants therein, including herein petitioner, but excluding Atty. Ireneo Calderon, to pay unto the private respondent the total sum of P 228,255.64 as moral and exemplary damages, and attorney's fees. In their "Opposition" to the petition which they intended as their Comment thereon, the respondents claimed that after private respondent Antonio Sy filed an opposition to the petitioner's Motion for Reconsideration, the petitioner succeeded by false representations in securing the order lifting the order of default and allowing it to file an answer to the complaint; that upon discovering such irregularity, private respondent filed a "Motion to Remove From the Records Answer of Defendant BA Finance Corporation"; and that it was on the basis of said motion that the respondent Court issued its order of July 14, 1982 which declared its previous order of June 10, 1982 as null and void and ordered the answer to be stricken out from the record. After the respondents have filed their comment to the petition, We issued a Temporary Restraining Order in the Resolution of October 11, 1982, enjoining the respondent Judge from further acting on Civil Case No. 43869 until further orders from this Court. It is distressing to note that a provision of the Revised Rules of Court which had been in force since January 1, 1964, or for the last 19 years, on a subject as significant or as commonplace as the period to file an answer to the complaint could be misapplied and misconstrued by a Court of First Instance in a major metropolitan area. It can only be hoped that a similar unfamiliarity with the Rules is not true with other courts in more remote areas of the country. The provision in question, Section 4 of Rule 16 of the Rules of Court, cannot be any clearer:
Admittedly, the above provision is a departure from the doctrine previously upheld as to the period when to file an answer in case a motion to dismiss the complaint is denied. While the above-quoted provision is new, there being no similar provision in the Rules of Court of 1940, the language thereof is clear and leaves no doubt as to the intendment thereof. It has received a categorical interpretation from the Supreme Court since January 31, 1969 in Matute vs. Court of Appeals, 26 SCRA 768, wherein this pronouncement was made:
Had the
respondent Court, exhibited a modicum of
awareness of the law and jurisprudence directly applicable to the
question
presented for its determination, this proceeding would not have been
filed
at all. It is undisputed that the petitioner was given an extension of
time within which to file its answer which was to expire on January 18,
1982. On January 13, 1982, it filed a Motion to Dismiss which was
denied,
and notice of which was served on the petitioner on March 8, 1982. When
the petitioner filed a Motion for Reconsideration on March 17, 1982, it
was well within the 15-day period within which to file the Answer
counted
from the date it received notice of the denial of its Motion to Dismiss
which was on March 8, 1982. Yet, on the erroneous belief that the
petitioner
had only to its credit the balance of the period to answer that it did
not consume by the time it filed its motion to dismiss, the respondent
Judge ruled that the filing of the Motion for Reconsideration on March
17, 1982 was already beyond the reglementary period and forthwith
declared
the defendant in default.
We could have stopped further discussion of the instant petition at this point. However, We cannot allow to pass unnoticed the subsequent developments in the case which had been characterized not only by obscurity, but also by actuations which are less than commendable. After declaring the petitioner in default in the Order of April 5, 1982, and after denying the Motion to Lift Order of Default in the order of May 4, 1982, the respondent Judge made a complete turnabout in his order of June 10, 1982 by setting aside the default declaration of the petitioner, giving no reason therefor except the catch phrase "in the interest of justice." Then, another change of mind on the part of the respondent Judge was manifested in his Order of July 14, 1982 which reiterated the Order of April 5, 1982 declaring the petitioner in default. This time, the respondent Judge woke up to his mistake and ruled that the petitioner had 15 days from the date it received notice of the denial of its Motion to Dismiss on March 11, 1982 within which to file its Answer. Nonetheless, respondent Judge stubbornly persisted in maintaining his view that the Answer of the respondent to the Complaint was filed out of time by alleging two new grounds, namely: [1] the Motion for Reconsideration filed by the petitioner against the denial of its Motion to Dismiss is a mere scrap of paper for lack of proof of service; and [2] the Motion for Reconsideration filed by the petitioner against the Order of May 4, 1982 which denied the petitioner's Motion to Lift Order of Default is pro-forma for being identical to petitioner's opposition to the plaintiff's Motion to Declare the Petitioner in Default. The lack of palpable merit of said grounds leads to a natural impression that the respondent Judge was determined to prevent the petitioner from being given a chance to defend itself in the case filed against it by the private respondent, contrary to repeated exhortations and pronouncements from the Supreme Court frowning upon judgments by default on purely technical grounds. The new arguments resorted to by the respondent Judge were not even mentioned in the motion of the private respondent to strike out the answer, nor were they mentioned by the respondent Judge in his first order declaring the petitioner in default. The motion to strike out filed by the private respondent and the Order of respondent Judge dated April 5, 1982 declaring the petitioner in default made reference only to the alleged fact that the Motion for Reconsideration of the denial of the Motion to Dismiss was filed beyond the reglementary period. Such ground as aforementioned, had been acknowledged by the respondent Judge himself in his Order of July 14, 1982 to be erroneous. The allegation that the Motion for Reconsideration of the denial of the Motion to Dismiss filed by the petitioner lacks the requisite notice of hearing and proof of service is a factual distortion. On page 4 of said Motion for Reconsideration which has been attached as Annex "F" of the petition [Rollo, pp. 51-54], it clearly appears that the petitioner's counsel set the said motion for hearing on April 16, 1982 and that a copy of the same was sent by registered mail to the counsel for the private respondent on March 17, 1982. The private respondent filed a motion to strike out the said motion for reconsideration [Rollo, pp. 55-58 dated March 24, 1982], thereby showing that private respondent had notice of the Motion for Reconsideration long before the scheduled hearing thereof on April 16, 1982. The imputation that the motion to reconsider the Order of May 4, 1982 which denied the petitioner's Motion to Lift Order of Default is pro-forma reveals a misconception of the concept of pro-forma motions for reconsideration. It is not every motion for reconsideration that reiterates grounds or arguments aired in a previous motion that may be declared pro-forma. It will be noted that the Motion for Reconsideration herein involved is of an interlocutory order, and not of a final judgment or final order. There should be a distinction in determining whether a motion for reconsideration may be declared pro-forma depending on whether it is directed against a final judgment or order, or only against an interlocutory order. In the case of the former, a repetition of arguments or grounds already sufficiently discussed in prior incidents may properly be categorized as being merely for purposes of delay. In the case of interlocutory orders, a reiteration of the ground or argument previously advanced is not necessarily indicative that the movant filed the motion merely for gaining delay. It must be remembered that normally, when an interlocutory order is sought to be reviewed or annulled by means of any of the extra legal remedies of prohibition or certiorari, it is required that a motion for reconsideration of the questioned order must first be filed, such being considered a speedy and adequate remedy at law which must first be resorted to as a condition precedent for filing of any of such proceedings [Secs. 1 and 2, Rule 65, Rules of Court]. There is no similar requirement in taking an appeal from a final judgment or order should the questioned interlocutory order be subject to attack only on one ground, as in the case of the default declaration herein involved, a motion for reconsideration against the order complained of would necessarily and inevitably contain a repetition of the ground previously alleged. In so doing, the movant is praying the court to give his motion a second look, in the hope that the court would realize its supposed error, correct the same, and thereby preclude the necessity of seeking relief in a higher tribunal. In the case presently considered, the reiteration of the argument that the respondent Judge committed error in his computation of the period to file an answer after a motion to dismiss shall have been denied becomes a necessity in view of the fact that although the first motion for reconsideration of the order of default was granted, the respondent Judge subsequently revoked his favorable action thereon. The motion to reconsider the order of revocation must necessarily invoke the same ground showing why the ground upon which the default order is based is erroneous. That said argument is no idle reiteration of the reason previously alleged, or that the Motion for Reconsideration was not filed for purposes of delay is indubitably shown by the fact that the respondent Judge sustained the same and corrected his error with respect to the period of time within which to file an answer on the basis thereof. By and large, it adequately appears that the questioned actuations of the respondent Judge in this case have been characterized not only by palpable error but also by grave abuse of discretion which should be corrected and warned against. WHEREFORE, the Petition is hereby granted. All the proceedings conducted by the respondent Judge in Civil Case No. 43869, including the judgment rendered therein dated August 17, 1982, insofar as herein petitioner is concerned, are hereby annulled and set aside. The Answer with Counterclaim filed by the petitioner dated June 10, 1982 shall be deemed admitted. Costs against private respondent. SO ORDERED. Teehankee, Melencio-Herrera, Plana, Relova, and Gutierrez, Jr., JJ., concur. |
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