Facts:

• Petitioner, Mondragon Leisure and Resorts Corp., entered into a Lease Agreement with the Clark Development Corporation for the development of the Mimosa Leisure Estate.
• Petitioner executed an Omnibus Credit and Security Agreement with respondent, United Coconut Planters Bank, for financing the development of the leased properties.
• Petitioner provided collateral in the form of an assignment of its leasehold rights.
• Petitioner faced financial setbacks due to the Asian economic crisis and issues with the Philippine Amusement and Gaming Corporation and the Clark Development Corporation.
• Respondent filed a case for foreclosure of real estate mortgage.

Issue:

• (Unlock)

Ruling:

• The court ruled that there was no forum shopping.
• The court found that the respondent's complaint stated a cause of action.
• The court denied the petitioner's pe...(Unlock)

Ratio:

• The court determined that there was no forum shopping because the two cases involved different credit lines and promissory notes.
• The court found that the respondent's complaint sufficiently established a cause of action.
• The allegations in the complaint, if assumed to be true, showed that the petitioner failed to repay the loan and the respondent had the right to seek foreclosure of ...continue reading