Case Digest (G.R. No. 142616)
Facts:
In Philippine National Bank v. Ritrato Group Inc., et al. (G.R. No. 142616, July 31, 2001), petitioner Philippine National Bank (PNB) is a domestic banking corporation and attorney-in-fact for its wholly owned subsidiary, PNB International Finance Ltd. (PNB-IFL). Respondents Ritratto Group Inc., Riatto International Inc., and Dadasan General Merchandise are likewise Philippine corporations that executed a series of loan agreements with PNB-IFL secured by real estate mortgages over four parcels in Makati City. From May 1996 to April 1998, the credit facility expanded from US$300,000 to US$1,421,316.18, leaving an outstanding balance of US$1,497,274.70. Upon respondents’ default, PNB-IFL, through PNB as its attorney-in-fact, notified respondents of mortgage foreclosure and scheduled a public auction on May 27, 1999. On May 25, 1999, respondents filed a complaint for injunction with prayer for a temporary restraining order (TRO) before the Regional Trial Court (RTC) of Makati, BranCase Digest (G.R. No. 142616)
Facts:
- Parties and Credit Facility
- Petitioner Philippine National Bank (PNB) is a domestic corporation; PNB International Finance Ltd. (PNB-IFL) is its wholly owned Hong Kong subsidiary.
- Respondents Ritratto Group, Inc., Riatto International, Inc., and Dadasan General Merchandise are domestic corporations.
- Loan Terms and Security
- On May 29, 1996, PNB-IFL opened a letter of credit for respondents in the amount of US$300,000, secured by real estate mortgages over four Makati City parcels.
- The credit line rose to US$1,425,000 by February 1997, then stood at US$1,421,316.18 in April 1998; total outstanding as of April 30, 1998 was US$1,497,274.70.
- Foreclosure Proceedings and Injunctive Relief
- PNB-IFL, through its attorney-in-fact PNB, notified respondents of a foreclosure sale set for May 27, 1999 at Makati City Hall.
- On May 25, 1999, respondents filed for a writ of preliminary injunction in RTC Makati, Branch 147; a 72-hour TRO was issued, hearing held June 8, 1999, and a writ of preliminary injunction issued June 30, 1999 (writ issued July 14).
- Trial Court and Appellate Actions
- On October 4, 1999, the trial court denied PNB’s motion to dismiss for lack of cause and privity.
- PNB petitioned the Court of Appeals for certiorari; CA affirmed both the injunction and denial of dismissal on March 27, 2000.
- PNB elevated the case to the Supreme Court under Rule 45.
Issues:
- Real Party in Interest
- Whether PNB, as attorney-in-fact and not a party to the loan contract, is a proper defendant and real party in interest.
- Jurisdiction and Scope of Injunction
- Whether the trial court issued a preliminary injunction beyond the relief prayed for, exceeding its jurisdiction.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)