Title
Capitol Medical Center, Inc. vs. Court of Appeals
Case
G.R. No. 82499
Decision Date
Oct 13, 1989
A dispute between faculty and administration at Capitol Medical Center College led to student protests, disrupting operations. The college closed, prompting a legal battle. The Supreme Court ruled the closure justified, annulling a lower court's order to reopen, citing student disruptions and lack of legal obligation to remain operational.

Case Summary (G.R. No. L-40553)

Background of the School's Closure

CMCI, through its CMCC, offered nursing, midwifery, and medical secretarial courses and was located in Quezon City. By mid-semester of the school year 1987-1988, tensions rose between the faculty and administration regarding faculty leave privileges, ultimately leading to a strike. Due to escalating hostilities and potential disruptions to hospital operations, the CMCI Board authorized the college's closure at the end of the first semester.

Events Leading to the Closure

In response to scheduled examinations being postponed due to protests, and concerns surrounding patient safety at the affiliated hospital, CMCI’s board convened on October 17, 1987, unanimously resolving to close the college permanently following the first semester. An announcement regarding the closure was disseminated to students, advising them to transfer to other institutions for their studies.

Communication with the Department of Education

Dr. Clemente formally notified the Department of Education, Culture and Sports (DECS) of the impending closure on October 20, 1987, followed by a second letter reinforcing this decision on October 29. Although DECS did not correctly comprehend that the letters were regarding immediate closure rather than phasing out courses, CMCCI proceeded with its decision, fearing further unrest.

Class Suit and Court Proceedings

On December 2, 1987, fifteen students and parents filed a lawsuit in the Quezon City Regional Trial Court seeking a writ for the opening of the college for enrollment. The court issued a preliminary mandatory injunction requiring CMCC to reopen, claiming students had a legal right to complete their courses. The injunction was contested, prompting the petitioners to appeal to the Court of Appeals.

Court of Appeals Decision

The Court of Appeals upheld the lower court's decision, arguing that the initial enrollment of students implied a binding contract for the school to operate until they completed their courses. The Court asserted that the petitioners could not unilaterally terminate this relationship despite the prior strikes causing cessation of operations.

Legal Principles on Injunction and Status Quo

The legal premises surrounding preliminary injunctions dictate that such orders aim to maintain the status quo until a case is decided on its merits. This case presented a unique circumstance where the status quo had shifted due to students' own actions, leading to a contentious situation where the court’s intervention could be interpreted as rewarding disruptive behavior.

Examination of the Contractual Relationship

The obligation between the students and the school was scrutinized, emphasizing that enrolment created expectations for a semester rather than a continuous educational commitment. Based on prevailing laws and edu

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