G.R. No. 86603 - Active Wood Products Co., Inc. vs. Court of Appeals

Active Wood Products, Co., Inc. (petitioner) filed Civil Case No. 6518-M in the Regional Trial Court, Branch XX, where respondent judge Legaspi was the presiding judge.
State Investment House, Inc. (private respondent) filed LRC Case No. P-39-84 in the Regional Trial Court, Branch XIV, presided over by Judge Felipe N. Villajuan, Jr.
Respondent in the petition was Hon. Court of Appeals, together with State Investment House, Inc., and Atty. Victorino P. Evangelista, ex-officio Sheriff of Malolos, Bulacan.

Active Wood constituted a mortgage in favor of State Investment to secure an indebtedness.
The mortgage was foreclosed, and the auction of the mortgaged properties resulted in State Investment bidding as the highest bidder.
The foreclosed properties belonged to Active Wood and were covered by TCT Nos. 262966 and 262967 of the Register of Deeds of Bulacan.
The certificate of sale was issued to State Investment and registered on December 2, 1983.

After the foreclosure, Active Wood filed Civil Case No. 6518-M with the court a quo.
By order dated February 27, 1984, the court in Branch XX declared as null and void the foreclosure and State Investment’s certificate of sale.

On February 14, 1984, State Investment filed a petition for a writ of possession pending redemption of the lands by Active Wood.
The petition was docketed as LRC Case No. P-39-84 and assigned to Branch XIV.
On March 23, 1984, Judge Villajuan granted the writ upon filing of a bond.
On April 18, 1984, State Investment moved in Branch XIV to reduce the amount of bond required by the court.

On October 2, 1984, the Court set aside the order of Branch XX that had earlier declared null and void the foreclosure and State Investment’s certificate of sale.
On December 3, 1984, Judge Villajuan:

denied State Investment’s motion for reduction of bond; and
in the same order, set aside his previous March 23, 1984 order granting the writ of possession conditioned upon posting of bond.

On March 13, 1985, Active Wood filed in LRC Case No. P-39-84 pending in Judge Villajuan’s Branch XIV a motion for consolidation of that case with Civil Case No. 6518-M pending in respondent judge’s Branch XX.
Active Wood also filed a motion in LRC Case No. P-39-84 to dismiss and/or suspend proceedings in that case until Branch XX resolved the validity of the mortgage raised in Civil Case No. 6518-M.
On July 1, 1985, Judge Villajuan, acting on Active Wood’s motions, held the proceedings in abeyance and directed that LRC Case No. P-39-84 be consolidated with Civil Case No. 6518-M, provided Branch XX would not object.

On November 28, 1985, respondent judge issued an order returning LRC Case No. P-39-84 to Branch XIV, signifying objection to the proposed consolidation.

(Subscriber-Only)

Whether consolidation was proper despite the cases being pending in different branches of the same court

Whether Civil Case No. 6518-M and LRC Case No. P-39-84 could be consolidated even if pending in different branches of the Regional Trial Court.
Whether consolidation was barred because LRC Case No. P-39-84 involved a petition for a writ of possession allegedly treated as an ex-parte proceeding and allegedly different from an “action.”
Whether the respondent court committed reversible error in denying consolidation.

Whether consolidation should be ordered to avoid conflicting determinations and promote orderly administration of justice...(Subscriber-Only)