G.R. No. 79937-38 - Sun Insurance Office, Ltd. vs. Asuncion

Sun Insurance Office, Ltd. (SIOL) filed a complaint on February 28, 1984 in the Regional Trial Court of Makati for consignation of a premium refund on a fire insurance policy and for judicial declaration of nullity against Manuel Uy Po Tiong.
Manuel Uy Po Tiong was declared in default for failure to file an answer within the reglementary period in the Makati action.
On March 28, 1984 Manuel Uy Po Tiong filed a separate complaint in the Regional Trial Court of Quezon City, docketed as Civil Case No. Q-41177, initially against Sun Insurance Office, Ltd. (SIOL) and later including E.B. Philipps and D.J. Warby as additional defendants.
The Quezon City complaint sought refund of premiums, issuance of a writ of preliminary attachment, and damages including actual, compensatory, moral, exemplary and liquidated damages, attorney’s fees, litigation expenses and costs; the body of the complaint implied damages of about P50,000,000 while the prayer did not quantify damages.
Manuel Uy Po Tiong paid only P210.00 as docket fee upon filing the Quezon City complaint; petitioners’ counsel objected but the objection was disregarded by Judge Jose P. Castro.

The Court en banc investigated numerous Quezon City cases for under-assessment of docket fees, transmitted records to this Court, and returned them with directions to re-raffle to other judges, excluding Judge Castro; Civil Case No. Q-41177 was re-raffled to Branch 104.
On October 15, 1985 the Court en banc issued a Resolution in Administrative Case No. 85-10-8752-RTC directing reassessment of docket fees, issuance of certificates of reassessment by clerks of court, and requiring litigants to specify amounts sought in pleadings.
On December 16, 1985 Judge Antonio P. Solano ordered the Clerk of Court to issue a certificate of assessment and to include any deficiency.
On January 7, 1984 petitioners filed a cautionary answer to forestall default (as reported in the record).
On August 30, 1984 Manuel Uy Po Tiong filed an amended complaint adding the two additional defendants.

Civil Case No. Q-41177 was assigned to Judge Maximiano C. Asuncion after his assumption on January 16, 1986; Judge Asuncion required parties to comment on the Clerk’s difficulty in reassessing fees due to unspecified amounts in the pleadings.
On January 23, 1986 Manuel Uy Po Tiong filed a "Compliance" and a "Re-Amended Complaint" stating in the prayer a claim of "not less than P10,000,000.00" and alleging in the body damages and attorney’s fees totalling about P44,601,623.70.
On January 24, 1986 Judge Asuncion admitted the second amended complaint and directed a copy be furnished the Clerk for reassessment; the Clerk reassessed P39,786.00 based on the "not less than P10,000,000.00" prayer, and Manuel Uy Po Tiong paid that amount.
Petitioners filed a petition for certiorari with the Court of Appeals questioning Judge Asuncion’s January 24, 1986 order.

On April 24, 1986 Manuel Uy Po Tiong filed a supplemental complaint adding P20,000,000.00 so the total claimed amount became about P64,601,623.70.
On October 16, 1986 Manuel Uy Po Tiong paid an additional docket fee of P80,396.00.
The Court of Appeals, on August 13, 1987, denied due course to portions of the petition seeking annulment of certain orders but gave due course to the portion questioning reassessment and require...(Subscriber-Only)

Whether the trial court acquired jurisdiction over Civil Case No. Q-41177 despite the initial underpayment of docket fees and, relatedly, whether amended or supplemental pleadings cured any jurisdictional defect caused by initial under-assessment.

Whether the Court’s ruling in Manchester Development Corporation vs. CA applies retroactively to cases pending at the time of its promulgation.
Whether payment of the docket fee after proceed...(Subscriber-Only)