Title
Lasala vs. National Food Authority
Case
G.R. No. 171582
Decision Date
Aug 19, 2015
NFA's lawyers' negligence led to annulled judgment; SC upheld CA's ruling due to extrinsic fraud, lack of jurisdiction, and unpaid docket fees.

Case Digest (G.R. No. 155619)

Facts:

  • Parties and Background
    • Petitioner Alberto T. Lasala, through PSF Security Agency, provided security services to National Food Authority (NFA).
    • Lasala’s employees filed an NLRC complaint (1994) for underpaid wages; NLRC held Lasala and NFA solidarily liable and garnished NFA funds.
  • Proceedings in RTC
    • NFA sued Lasala in RTC Quezon City Branch 220 for sum of money with damages and sought preliminary attachment; Lasala answered with a P3,550,000 counterclaim for various damages and unpaid wage differential.
    • First counsel (Atty. Mendoza) failed to present NFA’s evidence—inadvertently dismissing NFA’s complaint—but Lasala’s counterclaim survived; second counsel (Atty. Cahucom) presented no contrary evidence or cross-examination.
    • RTC granted Lasala’s counterclaim for P52,788,970.50 (far above prayed amount), including compensatory, moral, exemplary damages, litigation expenses, wage adjustment plus high interest.
  • Post-judgment Events
    • NFA failed to appeal; petition for relief from judgment (based on excusable negligence) was denied.
    • NFA management’s legal audit uncovered counsel’s gross mishandling; NFA filed in CA a petition (and amended petition) for annulment of judgment on grounds of extrinsic fraud and lack of jurisdiction.
    • Court of Appeals annulled the RTC decision, reasoning no concrete evidence supported Lasala’s counterclaim and thus the RTC acted without jurisdiction.

Issues:

  • Res judicata and availability of petition for annulment
    • Whether NFA’s prior petition for relief bars its petition for annulment of judgment.
    • Whether extrinsic fraud ground was waived for not being raised in the petition for relief.
  • Proper grounds and scope of Rule 47 annulment
    • Whether the CA erred in expanding “lack of jurisdiction” to include grave abuse of discretion.
    • Whether counsel’s negligence amounts to extrinsic fraud.
    • Whether Lasala’s wage adjustment counterclaim was compulsory (no docket fees) or permissive (requiring fees and subject to prescription).

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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