Case Digest (G.R. No. L-55687)
Facts:
On August 17, 1979, Juasing Hardware filed a complaint for collection against Pilar Dolla in the Court of First Instance of Cebu. During trial defendant pleaded lack of plaintiff's legal capacity to sue, and after plaintiff rested defendant filed a Motion for Dismissal (demurrer to evidence) arguing that Juasing Hardware was a sole proprietorship without juridical personality.
Respondent The Honorable Rafael T. Mendoza, Judge of the Court of First Instance of Cebu dismissed the case by Order of September 5, 1980 and denied reconsideration by Order of October 21, 1980; petitioner sought certiorari relief in this Court.
Issues:
- Did the lower court commit grave abuse of discretion in dismissing the case and refusing to admit the Amended Complaint to correct the party designation?
Ruling:
The Court granted the petition. The Orders dated September 5, 1980 and October 21, 1980 were annulled, and the lower court was ordered to admit the Amended Complaint. No costs were imposed.
Ratio:
The Court recognized that only natural or juridical persons may be parties in a civil action and that a sole proprietorship is not a juridical person under Art. 44 of the New Civil Code and Rule 3 of the Revised Rules of Court. Nonetheless, the defect in plaintiff's designation was formal and correctable under Rule 10, Sec. 4, since substitution of the owner as plaintiff would not change the substantial issues or prejudice the defendant; dismissal for that formal defect therefore constituted grave abuse.
Doctrine:
- Only natural or juridical persons may be parties in a civil action; a sole proprietorship has no separate juridical personality.
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