Title
Air Materiel Wing Savings and Loan Association, Inc. vs. Manay
Case
G.R. No. 175338
Decision Date
Apr 29, 2008
AMWSLAI election dispute: BSP disqualified candidates, TRO improperly served, election annulled, forum shopping found, Supreme Court upheld finality of decision.

Case Summary (G.R. No. 175338)

Factual Background

After all eleven members of the Board of Trustees of AMWSLAI resigned, a new election of trustees was scheduled for October 14, 2005. Respondents filed their certificates of candidacy. They were, however, disqualified and declared ineligible to run based on alleged irregularities reported by the Bangko Sentral ng Pilipinas (BSP).

Respondents then filed an election protest with the Regional Trial Court of Pasay City, docketed as RTC SEC Case No. 05-001-CFM. In addition, they sought an ex parte temporary restraining order (TRO) to enjoin the election. On October 13, 2005, the trial court issued a TRO effective for 72 hours. The court sheriff, Virgilio Villar, served the summons and the TRO. They were received by Ms. Kathy Liong of AMWSLAI’s receiving office. Later that afternoon, Liong returned the summons and TRO, stating she was not authorized to receive them on behalf of the respondents.

After hearing the TRO application, the trial court denied the application on the ground that the summonses had not been properly served. It concluded that it had not acquired jurisdiction over the respondents in the election protest. The election proceeded on October 14, 2005, and petitioners were declared winners and assumed office.

Respondents challenged the denial of the TRO by certiorari before the Court of Appeals, docketed as CA-G.R. SP No. 92372. They also prayed that the October 14, 2005 election be nullified and that they be reinstated in a hold-over capacity until a new set of trustees would have been elected and qualified. The Court of Appeals granted the petition, invalidated the October 14, 2005 election, and held that the service of summons on Liong was proper as substituted service, thereby rendering the restrained election null and void.

Petitioners thereafter elevated the matter to the Supreme Court.

Supreme Court’s October 9, 2007 Decision and Related Developments

On October 9, 2007, the Supreme Court rendered its judgment in G.R. No. 175338. It denied the petition, affirmed the Court of Appeals decision dated August 15, 2006 and its resolution dated November 10, 2006, and modified the ruling by annulling the October 14, 2005 election results. It also lifted the TRO issued earlier by the Court of Appeals. Petitioners’ Motion for Reconsideration was denied on December 3, 2007. Petitioners’ subsequent motion for leave to admit an attached second motion for reconsideration was denied on January 23, 2008.

After the Supreme Court’s final disposition, the court of origin issued an Order dated December 10, 2007 directing the eleven members of AMWSLAI’s Board of Trustees to vacate their positions to give way to the reinstatement of respondents (and certain petitioners) as trustees.

Thereafter, petitioners Col. Rolando Cacabelos and Lt. Cedric V. Reyes, together with Capt. Odelon Mendoza, filed a separate special civil action for certiorari with prayer for TRO before the Court of Appeals, docketed as CA-G.R. SP No. 101627, assailing the RTC’s December 10, 2007 Order. On December 20, 2007, the Court of Appeals issued a TRO enjoining the enforcement of the RTC’s December 10, 2007 Order.

The January 18, 2008 Election and the Alleged Attempt to Execute the Supreme Court Decision

On January 18, 2008, an election of AMWSLAI’s Board of Trustees was held in accordance with AMWSLAI’s By-Laws. Seventeen candidates vied for vacant seats. Respondents were not among the candidates who were voted for, and the respondents’ BSP disqualification status remained a factor in the factual narrative.

Respondents later returned to the Supreme Court through the instant Omnibus Motion. They asked the Court to (1) lift the Court of Appeals TRO issued in CA-G.R. SP No. 101627, (2) annul the January 18, 2008 election and its results, and (3) declare petitioners in contempt for defying the Supreme Court’s October 9, 2007 Decision.

Respondents alleged that after the RTC issued its December 10, 2007 Order implementing the Supreme Court Decision, Sheriff Villar made efforts to execute it. Respondents sought assistance from Col. Procopio Lipana, Station Commander of the Quezon City Police District Station 7. Respondents claimed Lipana refused assistance because a second motion for reconsideration was then pending before the Supreme Court. Despite this, respondents, accompanied by Sheriff Villar and Lipana, allegedly formed themselves as members of an interim Board of Trustees at AMWSLAI. They asserted quorum based on five out of eight incumbent members, and they allegedly appointed additional interim members to complete the eleven seats.

The board meeting and appointment actions were allegedly followed by resistance from the security guards, who purportedly refused to allow the newly appointed members to enter. Respondents then claimed the trial court deputized the National Bureau of Investigation (NBI) to implement the December 10, 2007 Order, but NBI agents refused intervention.

The Parties’ Contentions in the Omnibus Motion

In the Omnibus Motion, respondents maintained that the Supreme Court had authority to lift the Court of Appeals TRO and sought the deputization of the Philippine National Police for execution support. They argued that the January 18, 2008 election should be annulled because it was conducted under the auspices of individuals who were allegedly no longer legitimate Board members. They also sought contempt findings against petitioners and Col. Lipana.

Petitioners opposed the Omnibus Motion and invoked several procedural defects. They argued that respondents ignored the hierarchy of courts by coming directly to the Supreme Court. Petitioners stated that respondents should have filed a motion for reconsideration of the Court of Appeals TRO and, after denial, brought the matter via the proper certiorari procedure. Petitioners also contended that the validity of the January 18, 2008 election was outside the Supreme Court’s original focus in this context because jurisdiction over such matters lay in the regional trial courts under Republic Act No. 8799 and the Interim Rules of Procedure for Intra-Corporate Controversies.

Legal Basis and Reasoning of the Court

The Court held that it could not grant the reliefs respondents sought through the Omnibus Motion because they involved matters properly connected to a different case and an improper procedural vehicle. The Court emphasized that the present petition in G.R. No. 175338 was a petition for review of the Court of Appeals decision in CA-G.R. SP No. 92372. By contrast, the Omnibus Motion sought Supreme Court review of the validity of the Court of Appeals TRO in CA-G.R. SP No. 101627, which arose from a separate special civil action.

The Court reasoned that respondents could not obtain the lifting of the appellate TRO by filing merely a motion before the Supreme Court. The Court underscored that the correct remedy to annul the Court of Appeals TRO would be a motion for reconsideration at the Court of Appeals, and after denial, a petition for certiorari and prohibition in the Supreme Court. The Court declared that it could not take cognizance of proceedings before the Court of Appeals unless brought through the proper mode of review. Consequently, the Omnibus Motion was held to be an impermissible substitute for a special civil action for certiorari.

The Court cited additional grounds for dismissal. First, the Omnibus Motion was filed without payment of docket fees, which the Court characterized as an indispensable requirement for the Court’s cognizance. While the Court acknowledged that the non-payment of docket fees may be relaxed in extreme cases to serve the ends of justice, it held that respondents offered no valid reasons to bring the case within the exception.

Second, the Court found the Omnibus Motion wanting in the formal requirements for certiorari and prohibition, noting the absence of required elements such as verification, certification against forum shopping, certified true copies of the questioned judgment, copies of all pertinent pleadings and documents, and a verified statement of material dates. The Court considered these safeguards essential to protect the integrity of the appeal process, and it ruled that respondents could not disregard them.

On the merits of the procedural posture, the Court stressed that an extraordinary remedy like certiorari required observance of the rules, and that noncompliance could not be dismissed as a mere technicality. The Court recognized that litigation should not be reduced to technical games, yet it also held that procedural rules could not be ignored at will, particularly where the disregard prejudiced orderly presentation and assessment of issues. It further stated that the kind of unconventional relief sought in the Omnibus Motion found no support under the Rules of Court.

The Court also held that respondents committed forum shopping. It found that by filing the Omnibus Motion in the Supreme Court, respondents effectively sought to preempt the resolution of the same issue then pending before the Court of Appeals in CA-G.R. SP No. 101627. The Court reiterated the doctrine that forum shopping occurs when a party against whom an adverse judgment has been rendered in one forum seeks another forum in hopes of a favorable disposition, based on the practice of resorting to two fora for the same relief to increase chances of success.

Applying the forum-shopping framework, the Court held that the two proceedings involved the same parties and centered on the validity of the RTC’s December 10, 2007 Order. It reasoned that its ruling in the Omnibus Motion would create res judicata consequences for the pending Court of Appea

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