Case Digest (G.R. No. 170352)
Facts:
Megan Sugar Corporation v. Regional Trial Court of Iloilo, Branch 68, Dumangas, Iloilo, G.R. No. 170352, June 01, 2011, Supreme Court Second Division, Peralta, J., writing for the Court. Petitioner Megan Sugar Corporation (MEGAN) seeks review under Rule 45 of the CA Decision dated August 23, 2004 and Resolution dated October 12, 2005 in CA-G.R. SP No. 75789, which denied MEGAN’s certiorari petition challenging several orders of the Regional Trial Court (RTC) of Dumangas, Branch 68.Respondent New Frontier Sugar Corporation (NFSC) obtained a loan from respondent Equitable PCI Bank (EPCIB) on July 23, 1993, secured by real estate and chattel mortgages. Because of indebtedness, NFSC entered into a Memorandum of Agreement (MOA) with Central Iloilo Milling Corporation (CIMICO) on November 17, 2000, for CIMICO to operate NFSC’s mill for crop years 2000–2003. CIMICO later assigned its rights under that MOA to MEGAN by MOA dated October 3, 2002, and MEGAN began operating the mill on November 18, 2002.
EPCIB foreclosed NFSC’s mortgaged properties and became the purchaser at auction on May 10, 2002. Litigation ensued: NFSC filed a complaint for specific performance against CIMICO (Civil Case No. 02-240), while CIMICO filed suit for sum of money/breach of contract against NFSC (Civil Case No. 02-243) and later amended its complaint to implead EPCIB and the Philippine Industrial Security Agency (PISA). On September 25, 2002, the RTC issued a restraining order preventing EPCIB and PISA from taking possession; CIMICO (and later MEGAN as assignee) remained in possession.
At the November 29, 2002 hearing on Passi Iloilo Sugar Central, Inc.’s motion for intervention, Atty. Reuben Mikhail Sabig appeared and said he was appearing for MEGAN (while stating he was “in the process of taking over this case” and that his appearance was voluntary for the motion hearing). Thereafter various motions were filed, and on January 16, 2003 the RTC issued an order directing MEGAN (through its general manager) to deposit millers’ share sugar quedans in escrow; subsequent RTC orders on February 19 and February 28, 2003 (and execution) followed. EPCIB received and acted on the orders, including an ex-parte execution order.
MEGAN filed a petition for certiorari with the Court of Appeals (CA) on March 5, 2003, arguing principally that (1) Atty. Sabig lacked authority to represent MEGAN and therefore MEGAN was not bound by the RTC proceedings, and (2) the RTC lacked jurisdiction over MEGAN. The CA dismissed the petition on Au...(Subscriber-Only)
Issues:
- Is MEGAN estopped from questioning the authority of Atty. Reuben Mikhail Sabig to represent it and thus estopped from assailing the RTC’s jurisdiction?
- Did the Regional Trial Court have jurisdiction to issue the orders dated January 16, 2003, February 19, 2003 and February 28,...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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