Case Digest (G.R. No. 190231)
Facts:
Asia United Bank and Abraham Co, petitioners, vs. Goodland Company, Inc., respondent, G.R. No. 190231, December 08, 2010, Supreme Court First Division, Corona, C.J., writing for the Court.In 1999 Goodland Company, Inc. executed a deed of real estate mortgage over two Laguna properties (TCT Nos. T-321672 and T-321673) in favor of Asia United Bank (AUB) as security for loans of Smartnet Philippines, Inc. The deed was signed on behalf of Goodland by its vice-president Gilbert G. Guy, who was also president of Smartnet. In a January 29, 2002 letter Goodland repudiated the mortgage, alleging that Guy had signed a blank form as a “comfort document” and that Goodland never consented to mortgage the Laguna properties as security for Smartnet’s loans; Goodland accused the bank of later filling in the blanks and registering the mortgage.
On January 16, 2003 Goodland filed Civil Case No. B-6242 in the Regional Trial Court (RTC) of Biñan, Laguna, Branch 25, seeking declaration of nullity of the real estate mortgage and damages, essentially reiterating its allegation of lack of consent and fraud. AUB later conducted extrajudicial foreclosure on the properties and purchased them at public auction as highest bidder. While Civil Case No. B-6242 was pending, Goodland filed Civil Case No. B-7110 on November 26, 2006 in the same RTC branch, seeking annulment of the foreclosure sale and related reliefs (preliminary injunction, cancellation/consolidation of titles, writs of possession, damages).
AUB moved to dismiss Civil Case No. B-7110, and on March 15, 2007 the RTC (Acting Presiding Judge Romeo C. de Leon) dismissed B-7110 with prejudice. Thereafter, on motion of petitioners, the RTC (Presiding Judge Teodoro N. Solis) dismissed Civil Case No. B-6242 with prejudice on August 16, 2007 for willful and deliberate forum-shopping, finding that Goodland failed to inform the court that it had filed B-7110 and thus breached its certification against forum-shopping required by Rule 7, Sec. 5 of the Rules of Court; a December 5, 2007 motion for reconsideration was denied.
Goodland appealed the RTC orders to the Court of Appeals (CA). In a decision dated August 11, 2009 (CA-G.R. CV No. 91269), the CA’s Tenth Division reversed the RTC and reinstated Civil Case No. B-6242, holding that the two actions asserted dissimilar rights and sought different reliefs. Petitioners’ motion for r...(Subscriber-Only)
Issues:
- Did respondent Goodland Company, Inc. commit willful and deliberate forum-shopping by filing Civil Case No. B-7110 while Civil Case No. B-6242 was pending?
- Was the dismissal with prejudice of Civil Case No. B-6242 by the RTC proper and should those RTC ord...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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