G.R. No. 153192 - Dealco Farms, Inc. vs. National Labor Relations Commission

On September 26, 1957, Rosario Morales-Terez and Santiago Terez, predecessors-in-interest of the petitioner, filed Civil Case No. 2031 in the Court of First Instance of Misamis Occidental, Branch II at Ozamis City against Felicidad Busarang and Fortunato Gonzaga.
The complaint sought recovery of possession, ownership, unpaid rentals, and damages for one-half of a piece of land and one-half of the house situated in Ozamis City.
The trial court issued an Order on January 24, 1963, dismissing the complaint, third-party complaint, and counter-claim for failure to prosecute.
A motion for reconsideration was filed, leading to a subsequent Order on August 12, 1963, which modified the dismissal to be without prejudice.

On May 7, 1978, the petitioner, as successor-in-interest of Rosario Morales-Terez, filed Civil Case No. OZ-704 against the same respondents with substantially similar allegations and reliefs as in Civil Case No. 2031.
On May 31, 1978, respondents filed their answer denying the complaint and asserting the affirmative defense that the cause of action was barred by prescription.

On October 10, 1979, the respondent judge issued an Order dismissing the complaint on the ground of prescription.
The Order stated that after the dismissal without prejudice of Civil Case No. 2031 on August 12, 1963, the plaintiffs had ten (10) years to refile; failure to do so caused the right to recover possession and ownership to prescribe.
The judge noted the defendants had been in apparent good faith possession during the lapse of fifteen years.
The complaint was dismissed without pronouncement as to costs.

Whether the dismissal of the complaint based on prescription was correct.
Whether the lapse of fifteen (15) years from the prior dismissal without prejudice barred the claim for recovery of possession and ownership of the property.
Whether acquisitive prescription (adverse possession) applies where not pleaded or proven.