Title
Allied Banking Corp. vs. Court of Appeals
Case
G.R. No. 85868
Decision Date
Oct 13, 1989
A bank officer sued for unpaid loan after bank liquidation; third-party complaint against Central Bank denied due to prescription and procedural delays.
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Case Summary (G.R. No. 85868)

Background of the Case

  • Joselito Z. Yujuico obtained a loan of P500,000 from General Bank and Trust Company (GENBANK) on April 1, 1976, evidenced by a promissory note.
  • Yujuico was a ranking officer and part of the family controlling GENBANK.
  • The Central Bank issued resolutions on March 25 and March 29, 1977, prohibiting GENBANK from conducting business and ordering its liquidation.
  • Allied Banking Corporation (ALLIED) acquired GENBANK's assets and liabilities, including Yujuico's loan obligation.
  • ALLIED filed a collection suit against Yujuico on February 7, 1979, after he defaulted on the loan.

Procedural Developments

  • In 1987, Yujuico sought to amend his answer and file a third-party complaint against the Central Bank and the liquidator, Arnulfo Aurellano, alleging tortious interference that prevented him from fulfilling his loan obligation.
  • The Regional Trial Court (RTC) denied the admission of the third-party complaint but allowed the amended answer.
  • The case was re-raffled to Branch 61 of the RTC, where Judge Domingo D. Panis reiterated the denial of the third-party complaint.
  • Yujuico filed a petition for certiorari with the Court of Appeals, which found grave abuse of discretion by Judge Panis and ordered the admission of the third-party complaint.

Petitioner’s Assignments of Error

  • Petitioner ALLIED contended that the Court of Appeals erred in ruling that Judge Panis committed grave abuse of discretion.
  • Specific errors included:
    • The third-party complaint did not state a cause of action.
    • The cause of action had already prescribed.
    • Admission of the third-party complaint would cause unnecessary delays.
  • ALLIED also argued that the rule against raising new defenses on appeal does not apply to certiorari actions.

Legal Framework of Third-Party Complaints

  • A third-party complaint allows a defendant to bring in a third party to seek contribution, indemnity, or other relief related to the plaintiff's claim.
  • The third-party complaint is independent of the original complaint and must be connected to the plaintiff's claim.
  • The Court outlined tests to determine if a third-party claim is "in respect of the plaintiff's claim."

Analysis of the Third-Party Complaint

  • The Court found that Yujuico's claim was based on tortious interference and was connected to the prior decision of the Court of Appeals that annulled GENBANK's liquidation.
  • The claim for indemnity was deemed to arise from the same transaction as the original complaint, satisfying the necessary legal tests.
  • The Court acknowledged that while the third-party complaint could introduce complexity, it was relevant to clarify the issues arising from the transaction.

Prescription of the Cause of Action

  • ALLIED argued that the cause of action for tortious interference should have been filed within four years from the date it accrued, which they claimed was March 25, 1977.
  • Yu...continue reading

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