Case Digest (G.R. No. 79983)
Facts:
Bugnay Construction and Development Corporation v. Hon. Crispin C. Laron, Judge of the Court of First Instance (RTC), Branch 44, Dagupan City, G.R. No. 79983. August 10, 1989. Supreme Court Second Division. Regalado, J., writing for the Court.On March 3, 1978 the City of Dagupan awarded a lease to P and M Agro-Development Corporation over the Magsaysay Market Area (approx. 3,692 sq. m.). Because of alleged noncompliance, the City filed a suit to rescind that lease before the Regional Trial Court (RTC), Pangasinan, Branch 41 — docketed Civil Case No. D-6157 — which resulted in a decision dated January 16, 1985 based on a "Joint Manifestation." A writ of execution was issued September 26, 1985 ordering delivery of possession to the City. P and M moved for reconsideration on November 5, 1985; that motion was ultimately resolved by Branch 41 on August 17, 1987 when the court set aside the January 16, 1985 decision on the ground that the Joint Manifestation did not constitute a valid compromise.
While the D-6157 motion for reconsideration was pending, the Sangguniang Panlungsod on April 20, 1987 authorized the City Mayor to enter into a lease with Bugnay Construction and Development Corporation (petitioner), and on April 27, 1987 the City and Bugnay executed a contract of lease for the same market area under which Bugnay would finance, construct and operate a market/building at its own expense and pay rent to the City; the lease term would commence upon relocation of stallholders.
On June 15, 1987 P and M, through counsel Regino R. Ravanzo, Jr., filed Civil Case No. D-8664 in Branch 43 seeking injunction and annulment of the lease; Branch 43 initially issued a temporary restraining order on June 19, 1987 but dissolved it on June 30, 1987. On July 17, 1987 Ravanzo individually filed Civil Case No. D-8696 in Branch 44, ostensibly as a taxpayer’s suit, attacking the same lease and seeking preliminary injunctions and a TRO to stop Bugnay’s construction; Branch 44 issued a restraining order on July 24, 1987.
The City and its acting mayor moved to dismiss D-8696 on July 28, 1987 for lack of real party in interest, failure to state a cause, pendency of D-8664 (and thus forum-shopping). Branch 44 denied the motion to dismiss on August 5, 1987 and denied reconsideration on August 7, 1987; the court requ...(Subscriber-Only)
Issues:
- Did the respondent judge commit grave abuse of discretion in issuing the writ of preliminary injunction in Civil Case No. D-8696 despite the pendency of another action between the same parties and for the same cause (Civil Case No. D-8664/D-6157)?
- Did the respondent judge commit grave abuse of discretion in denying the motion to dismiss D-8696 by recognizing that Regino R. Ravanzo, Jr. (as a purported taxpayer) had legal capacity to sue?
- Were the private respondents guilty of forum-shopping by fi...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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