Title
Filipinas Industrial Corp. vs. San Diego
Case
G.R. No. L-22347
Decision Date
May 27, 1968
Petitioners challenged venue and real party in interest in a damages suit filed by an attorney-in-fact. SC ruled the action invalid as it was not in the name of the principal, dismissing the case.

Case Summary (G.R. No. 219157)

Background of the Case

On May 3, 1963, Pastor D. Ago, acting as the attorney-in-fact for Francisco Laiz, initiated Civil Case No. Q-7228 in the Court of First Instance of Rizal against several defendants, including the petitioners, seeking damages alongside a request for preliminary attachment and injunction. The various defendants, including corporations and individuals, are residents of either General Santos or Davao City, complicating the issue of proper venue.

Venue and Motion to Dismiss

The petitioners filed an urgent motion to dismiss the complaint on May 16, 1963, arguing the venue was improperly laid since the action is personal and the real party in interest (Laiz) resides outside Quezon City. They claimed that, according to Section 1 of Rule 5 of the old Rules of Court, the suit should be initiated in the Court of First Instance of Cotabato or Davao City. This was followed by a supplemental motion asserting additional grounds based on the real party in interest requirement.

Opposition to the Motion

Pastor Ago opposed the motion, arguing that as the named plaintiff residing in Quezon City, he had the right to file the suit there. He contended that even if he was deemed an attorney-in-fact for Laiz, the waiver of any venue defect had occurred due to the defendants appearing before the court on various motions subsequent to the complaint being filed.

Judge's Ruling and Petitioners' Response

Respondent Judge Lourdes P. San Diego denied the motions to dismiss, asserting that a duly authorized agent may indeed sue in his own name. The judge ruled that any judgment rendered would affect Francisco Laiz due to the agent's status. The petitioners then filed a petition for certiorari, asserting that the judge acted with grave abuse of discretion by disregarding the governing legal principles, particularly the requirement that actions must be filed in the name of the real party in interest.

Court's Analysis on Real Party in Interest

The Supreme Court underscored the principle established under Section 2 of Rule 3 of the old Rules of Court, which mandates every action to be prosecuted in the name of the real party in interest. The Court reviewed precedents that affirm an attorney-in-fact cannot bring an action in their own name if they do not hold a direct interest in the matter. The rationale stated is that the principal retains the rights to any judgment rendered, and thus actions must be filed in the principal's name.

Denial of Authority for Action in Personal Name

The Court emphasized decisions where prior rulings established that any

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