Title
Manila Banking Corp. vs. Court of Appeals
Case
G.R. No. 45961
Decision Date
Jul 3, 1990
A warehouse storage company fails to establish a cause of action in their complaint for injunction against a bank, resulting in the dismissal of their case.
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Case Digest (G.R. No. 45961)

Facts:

  • Luzon Brokerage Corporation (LUZON) filed a case against Manila Banking Corporation (MANILABANK), Pacific Copra Export Co., Inc. (PACOCO), and the Provincial Sheriff of Surigao del Norte.
  • LUZON entered into a warehouse storage agreement with PACOCO and leased two warehouses from PACOCO to deposit copra.
  • MANILABANK requested the Provincial Sheriff to sell the copra at public auction without satisfying LUZON's lien.
  • LUZON filed a complaint for injunction to prevent the sale of the copra and claimed superior liens.
  • The Trial Court dismissed the complaint, ruling that LUZON failed to state a cause of action.
  • The Court of Appeals reversed the dismissal and remanded the case for further proceedings.
  • MANILABANK appealed to the Supreme Court.

Issue:

  • (Unlock)

Ruling:

  • The complaint for injunction filed by LUZON does not set out a cause of action.
  • The Trial Court's ...(Unlock)

Ratio:

  • An action for injunction is a recognized remedy in the Philippines, but it is distinct from the provisional remedy of preliminary injunction.
  • A complaint for injunction seeks to permanently enjoin the defendant from the commission or continuance of a specific act or to compel the defendant to continue the performance of a particular act.
  • In this case, the acts sought to be restrained by LUZON's complaint, namely ...continue reading

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