Title
Duque vs. Court of Appeals
Case
G.R. No. 125383
Decision Date
Jul 2, 2002
Petitioners sued respondents over dishonored checks; RTC ruled for petitioners, CA reversed due to improper service of request for admission. SC upheld CA, remanded for trial.

Case Digest (G.R. No. L-16307)

Facts:

  • Parties and Procedural History
    • Petitioner Fortunata N. Duque and petitioner Marcosa D. Valenzuela each filed separate complaints before the Regional Trial Court (RTC) of Valenzuela.
      • Duque alleged that respondents—spouses Enrico and Edna Bonifacio—negotiated with her various checks in exchange for cash, amounting to P270,000.00.
      • Valenzuela alleged similar facts, involving checks totaling P432,000.00.
    • The respondents denied the allegations in their Answers, specifically refuting that they negotiated such checks, represented themselves as holders in due course, or issued all of the checks mentioned.
    • The respondents also claimed that any settlement arrangements were limited to checks they had duly issued, and they disputed the true extent of the alleged indebtedness.
  • Allegations and Claims by the Petitioners
    • The petitioners alleged that:
      • The checks negotiated with them were represented as being paid for value and sufficiently funded.
      • Upon presentation, the checks were dishonored, triggering a chain of events where Duque and Valenzuela gave notice of such dishonor and repeatedly demanded payment or replacement with cash.
    • They supported their claims by attaching the checks as exhibits and asserting that respondents had signed promissory notes acknowledging indebtedness.
    • Petitioners further asserted that letters of demand, sent on November 28, 1987 (and received on December 5, 1987), corroborated their cause of action.
  • Request for Admission and RTC Pre-Trial Proceedings
    • On November 22, 1988, the petitioners filed a Request for Admission addressed to the respondents, seeking admissions on matters including:
      • That respondents negotiated with the petitioners for valuable consideration regarding the checks.
      • That respondent Edna Bonifacio executed promissory notes (dated November 23, 1987) acknowledging indebtedness in the amounts claimed by Duque and Valenzuela.
      • That the petitioners sent letters of demand dated November 28, 1987, which the respondents received on December 5, 1987.
    • Due to the respondents’ failure to respond under oath to this request, the RTC, invoking Sections 1 and 2 of Rule 26 of the Rules of Court, issued an order deeming the matters admitted.
  • RTC’s Decision and Subsequent Appeal
    • On February 1, 1989, the RTC rendered a decision favoring the petitioners:
      • It ruled that, by their failure to specifically and under oath deny the requested admissions, the respondents were deemed to have admitted the allegations.
      • The decision condemned the respondents to pay the petitioners the respective amounts claimed along with legal interest from the filing of the complaint.
    • Dissatisfied with this decision, the respondents elevated the case to the Court of Appeals.
  • Court of Appeals Decision and Issues Raised
    • On March 13, 1996, the Court of Appeals vacated and set aside the RTC decision and remanded the case for trial on the merits.
      • The appellate court noted that the matters in the request for admission had already been denied in the respondents’ Answers, rendering the request redundant.
      • It also held that the petitioners did not comply with the procedural requirements of Rule 26, as the request was filed in court but not served directly on the respondents.
    • A subsequent motion for reconsideration by the petitioners was denied in a resolution dated May 21, 1996.
  • Petition for Review on Certiorari
    • Petitioner Duque filed a petition for review on certiorari under Rule 45, contesting the Court of Appeals’ decision.
    • The petition assigned the following errors:
      • The Court of Appeals erred in not applying Sections 1 and 2 of Rule 26 of the Rules of Court.
      • The Court of Appeals erred in concluding that there was no valid service of the Request for Admission on the private respondents.

Issues:

  • Whether the respondents’ failure to respond to the Request for Admission constitutes an implied admission under Sections 1 and 2 of Rule 26 of the Rules of Court.
    • Petitioners argue that the lack of a sworn denial automatically implies admission of the allegations.
    • Respondents maintain that the issues addressed by the Request had been previously denied in their Answers, making a further admission redundant.
  • Whether the service of the Request for Admission was properly effected.
    • Petitioners contend that despite being served on counsel, such service is equivalent to personal service on the respondents.
    • Respondents (and the Court of Appeals) argue that direct service on the parties is required under the Rules of Court for the Request to be valid.
  • The propriety of requiring respondents to respond to allegations that are already contained and denied in the pleadings.
    • Petitioners justify the Request for Admission as seeking to solidify evidentiary matters crucial for establishing their cause of action or defense.
    • Respondents and the appellate decision emphasize the redundancy and the absence of additional evidence beyond the pleadings.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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