Case Digest (G.R. No. 118438)
Facts:
Allied Agri-Business Development Co., Inc. v. Court of Appeals and Cherry Valley Farms Limited, G.R. No. 118438, December 04, 1998, First Division, Bellosillo, J., writing for the Court.On 14 October 1986 Cherry Valley Farms Limited (CHERRY VALLEY), a foreign company based in England, filed a complaint before the Regional Trial Court (RTC) of Makati City against Allied Agri-Business Development Co., Inc. (ALLIED) for collection of money. The complaint alleged that between 1 September 1982 and 16 February 1983 ALLIED purchased duck hatching eggs and ducklings from CHERRY VALLEY valued at English Sterling Pounds 51,245.12, failed to pay despite demand (including a solicitor’s letter dated 22 March 1985), and that ALLIED’s president, Ricardo Quintos, acknowledged the indebtedness in a letter dated 8 October 1985.
ALLIED filed an answer dated 27 February 1986 denying material allegations and asserting defenses including lack of capacity to sue on the part of CHERRY VALLEY (allegedly an unlicensed foreign corporation), lack of authority for Quintos’s letter, incorrect computation of the alleged obligation, and that not all goods invoiced had been ordered or received.
On 19 July 1988 CHERRY VALLEY served a Request for Admission (dated 15 July 1988) on ALLIED seeking admissions concerning corporate officers and ownership, the purchase and receipt of goods valued at 51,245.12, receipt of the solicitor’s demand, Quintos’s proposal to form a new corporation, the refusal of that proposal, and Quintos’s alleged admission of indebtedness. ALLIED filed Comments/Objections contesting the propriety of several requests and asserting that CHERRY VALLEY bore the burden to prove those matters at trial.
The RTC directed compliance. On 11 August 1988 the trial court disregarded ALLIED’s objections for failure to comply with Section 2, Rule 26, of the Rules of Court and ordered ALLIED to answer the request within ten days; ALLIED’s motion for reconsideration was denied on 8 November 1988 and the court gave a non-extendible five-day period to answer. ALLIED did not file a sworn answer within the period, and CHERRY VALLEY moved for summary judgment on the ground of implied admissions under Rule 26.
On 23 October 1990 the RTC granted summary judgment in favor of CHERRY VALLEY, ordering ALLIED to pay the claimed amount (or its peso equivalent) plus legal interest and awarding ten percent (10%) attorneys’ fees and costs of suit. ALLIED appealed to the Court of Appeals, which on 6 September 1994 af...(Pro-only)
Issues:
- Did CHERRY VALLEY lack legal capacity to sue in the Philippines because it was an unlicensed foreign corporation, thereby requiring dismissal of its complaint?
- Did ALLIED’s failure to file a sworn answer to CHERRY VALLEY’s Request for Admission operate as deemed admissions under Rule 26 of the Rules of Court and render summary judgment proper (including whether summary judgment violated ALLIED’s right to due process or im...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)