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
Case Syllabus (G.R. No. 85868)
Case Overview
- The case involves a petition for review on certiorari filed by Allied Banking Corporation (Petitioner) against the Court of Appeals and Joselito Z. Yujuico (Respondents).
- The focus is on the reversal of the Court of Appeals’ decision dated September 5, 1988, which declared the denial of private respondent's third-party complaint as null and void.
- The case originated from a collection suit over a loan taken by Joselito Z. Yujuico from the General Bank and Trust Company (GENBANK).
Background Facts
- On April 1, 1976, Joselito Z. Yujuico secured a loan of ₱500,000 from GENBANK, evidenced by a promissory note.
- Yujuico was a ranking officer and part of the family controlling GENBANK.
- The Monetary Board of the Central Bank issued resolutions in March 1977 that led to GENBANK's liquidation.
- Allied Banking Corporation acquired GENBANK's assets and liabilities, including the receivable from Yujuico.
- Allied filed a complaint on February 7, 1979, due to Yujuico's failure to pay the loan.
Procedural History
- In 1987, Yujuico attempted to amend his answer and file a third-party complaint against the Central Bank and the liquidator, Arnulfo Aurellano.
- The Regional Trial Court (RTC) denied the admission of the third-party complaint but allowed the amended answer.
- Yujuico filed a petition for certiorari with the Court of Appeals, questioning the RTC's orders.
- The Court of Appeals found ...continue reading