Case Digest (G.R. No. 95533)
Facts:
On December 28, 1988, the Republic of the Philippines, represented by the Office of the Solicitor General, filed a complaint for escheat against several banks, including the Philippine Commercial and International Bank (PCIB), in the Regional Trial Court of Davao City. The complaint was based on Act No. 3936, as amended by P.D. 679, which governs unclaimed balances. The petitioner alleged that the banks had submitted statements listing deposits and credits for depositors who were either known to be deceased or had not made any transactions for ten years or more since December 31, 1970. The petitioner sought a judgment declaring that these unclaimed deposits be escheated to the Republic and ordered the banks to deposit the amounts with the Treasurer of the Philippines.
On April 12, 1989, the trial court issued an order requiring the petitioner to show cause for the complaint's dismissal due to a lack of allegations regarding compliance with two conditions outlined in Se...
Case Digest (G.R. No. 95533)
Facts:
Filing of the Complaint:
On December 28, 1988, the Republic of the Philippines filed a complaint for escheat with the Regional Trial Court (RTC) of Davao City against several banks. The complaint alleged that the banks had submitted sworn statements listing deposits and credits held for depositors or creditors who were known to be dead, had not been heard from, or had not made deposits or withdrawals for ten years or more since December 31, 1970. The complaint sought to escheat these unclaimed balances to the Republic of the Philippines.
Order to Show Cause:
On April 12, 1989, the RTC issued an order requiring the petitioner to show cause why the complaint should not be dismissed for failure to state a cause of action. The court noted that the complaint did not allege compliance with two conditions under Section 2 of Act No. 3936, as amended by P.D. 679 (the "Unclaimed Balances Law").
Amended Complaint:
On April 27, 1989, the petitioner filed a motion to amend the complaint to allege compliance with the conditions. The amended complaint sought the escheat of P97,263.38 in unclaimed balances held by the banks.
Publication Order:
On June 7, 1989, the RTC ordered the petitioner to publish a notice in the Mindanao Forum Standard once a week for two consecutive weeks. The notice was to include the summons, the amended petition, and the list of unclaimed balances, estimated to cost P50,000.00.
Request to Dispense with Publication:
On July 11, 1989, the petitioner requested the court to dispense with the publication of the list of unclaimed balances, arguing that it would incur unnecessary expenses for the government.
Dismissal Order:
On August 1, 1989, the RTC refused to dispense with the publication and ordered that unless the petitioner agreed to the publication and covered the costs within 30 days, the case would be dismissed without prejudice. The petitioner’s motion for reconsideration was denied, and the case was dismissed on October 31, 1989.
Petition for Certiorari and Mandamus:
On January 10, 1990, the petitioner filed a petition for certiorari and mandamus with the Court of Appeals, alleging grave abuse of discretion by the RTC. The Court of Appeals dismissed the petition, ruling that the proper remedy was an ordinary appeal.
Issue:
- (Unlock)
Ruling:
- (Unlock)
Ratio:
- Finality of Orders: Even a dismissal without prejudice is a final order if no motion for reconsideration or appeal is timely filed.
- Proper Remedy: Certiorari is a remedy of last recourse and cannot substitute for a lost appeal.
- Due Process: Publication of unclaimed balances is essential to inform potential claimants and protect their rights.
- Government’s Financial Constraints: Financial difficulties do not justify dispensing with due process requirements.