Title
Dy vs. Mandy Commodities, Inc.
Case
G.R. No. 171842
Decision Date
Jul 22, 2009
A dispute over a leased government property in Binondo, Manila, involving PNB, Mandy Commodities, and Gloria Dy, centered on lease renewal, possession rights, and forum shopping, ultimately favoring Mandy Commodities.
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Case Summary (G.R. No. 171842)

Petition for Review on Certiorari

  • Petitioner Gloria S. Dy seeks to reverse the Court of Appeals' decision dismissing her appeal due to forum shopping.
  • The case originates from a lease agreement between the National Government and the Philippine National Bank (PNB) for a government-owned land parcel.
  • PNB sublet a portion of this land to Mandy Commodities Co., Inc. (respondent) for a period corresponding to PNB's lease with the government.

Lease and Sublease Developments

  • The original lease was for 25 years, starting on August 1, 1978, and set to expire on July 31, 2003, with a possibility of renewal.
  • Various memoranda from the Department of Environment and Natural Resources (DENR) regarding the renewal of the lease created confusion, with approvals and revocations occurring in 2002 and 2003.
  • Ultimately, the DENR withdrew the lease contract with PNB, leading to a repossession notice from the Land Management Bureau (LMB).

Legal Actions Initiated by PNB

  • To prevent repossession, PNB filed a complaint for injunction in the Regional Trial Court (RTC) of Pasay, seeking a Temporary Restraining Order (TRO).
  • The RTC denied PNB's application for a TRO, leading to an appeal to the Court of Appeals, which later granted a TRO but was rendered moot as LMB had already taken possession of the property.

Competing Claims and Court Decisions

  • Petitioner Dy obtained a provisional permit from LMB and took possession of the property, prompting Mandy Commodities to file a complaint for damages and injunction.
  • The RTC ruled in favor of Mandy Commodities, allowing them to continue their business on the property despite the LMB's earlier actions.

Forum Shopping Allegations

  • Petitioner filed an Unlawful Detainer case against Mandy Commodities while the Forcible Entry case was still pending, leading to allegations of forum shopping.
  • The Court of Appeals dismissed Dy's appeal, citing forum shopping and lack of merit, as both cases involved the same parties and issues regarding possession.

Legal Framework on Forum Shopping

  • Forum shopping is defined as the practice of seeking relief from multiple courts to increase the chances of a favorable outcome.
  • The rules against forum shopping are strict, and violations can lead to dismissal of cases, as outlined in the Rules of Court.

Elements of Forum Shopping

  • The determination of forum shopping involves assessing the identity of parties, rights asserted, and the potential for conflicting judgments.
  • In this case, the elements of forum shopping were present, as both cases involved the same parties and the same issue of possession.

Court's Findings on Possession

  • The Court of Appeals found that Mandy Commodities had prior possession of the property and was acting within its rights...continue reading

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