Facts:

• Insular Veneer, Inc. and its president, Martin Tinio, Sr. are the petitioners.
• Respondents include Hon. Andres B. Plan, presiding judge of the Court of First Instance of Isabela, and Consolidated Logging and Lumber Mills, Inc.
• On October 10, 1969, Consolidated Logging filed a complaint for damages and injunction against Insular Veneer, Inc. and Tinio in Isabela.
• The complaint sought recovery of logs delivered to Senador Li at Insular Veneer’s plywood plant in Manila.
• The initial complaint did not clarify the need for an injunction or include Senador Li as a party.
• Judge Luis Vera Cruz denied a preliminary injunction but granted a restraining order for Consolidated Logging to withdraw logs, later increasing the amount.
• Consolidated Logging dismissed its case in Isabela on October 29, 1969, and refiled in Manila, adding new respondents and increasing its claim.
• The Manila court dismissed the case due to the nonappearance of Consolidated Logging’s counsel at a pre-trial.
• Consolidated Logging returned to Isabela and filed an amended complaint, treated as a revival of the original case.
• Insular Veneer, Inc. filed a motion to dismiss the amended complaint based on res judicata and the two-dismissal rule, which was denied by Judge Plan.
• Petitioners sought certiorari and mandamus to annul the orders denying their motion to dismiss.

Issue:

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Ruling:

• The Supreme Court ruled in favor of Insular Veneer, Inc. and Martin Tinio, Sr.
• The orders of the Isabela court dated August 27 and November 27, 1974, were set aside.
• The amended complaint of Consolidated Logging was dismissed on the ground of res judicata.
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Ratio:

• The Supreme Court found that the Isabela court gravely abused its discretion by not dismissing the amended complaint based on res judicata.
• Consolidated Logging had voluntarily dismissed its original action in Isabela and refiled a similar action in Manila, which was dis...continue reading