Case Summary (G.R. No. 219071)
Factual Background (Agreement, Chattel Mortgage, Replevin Complaint)
TTAI supplied feed and other inputs on credit to Jorgenetics for hog‑raising operations. To secure payment of obligations amounting to PHP 20,000,000.00, Jorgenetics executed a chattel mortgage over its hog inventory (4,765 heads). TTAI filed a complaint for replevin with damages seeking immediate possession of the livestock and alternative recovery of the mortgage debt, alleging Jorgenetics failed to pay despite demand.
Trial Court Initial Proceedings and Writ of Replevin (Service, Seizure, Motion to Dismiss)
The complaint was raffled to the RTC and a writ of replevin was issued requiring a bond of PHP 40,000,000.00. The writ was served at petitioner’s farm upon purchasing officer Rowena Almirol, who refused acknowledgment; the return indicated seizure and delivery of the hogs to respondent. Jorgenetics moved to dismiss for invalid service of summons (service at the farm rather than business address in Quezon City; lack of justification for substituted service), and sought quashal of the writ and liability against the replevin bond.
Trial Court Order of Dismissal and Subsequent Motions (February 4, 2010 Order)
The trial court issued an order dated February 4, 2010 dismissing the complaint for replevin for want of jurisdiction over Jorgenetics’ person and ordered the seized properties returned to the defendant. TTAI’s motion for reconsideration was denied. Jorgenetics thereafter filed a Motion for Issuance of Writ of Execution with Application for Damages against the replevin bond, asserting it suffered damages from the seizure and pledging to present proof.
Parallel and Subsequent Proceedings (Foreclosure Sale, Application for Damages, Deposit of Auction Proceeds)
While proceedings continued, TTAI commenced extrajudicial foreclosure of the chattel mortgage and became the highest bidder at public auction, with issuance of a certificate of sale in its favor. The trial court (in October 2010) treated the February 4, 2010 dismissal as final and executory, ordered evidence on damages against the replevin bond, and later (January 18, 2011) issued a writ of execution. Jorgenetics sought deposit of the auction proceeds with the court; the trial court ordered deposit and set hearing dates for damages. Motions to quash the writ and other reconsideration motions followed.
CA Ruling in CA G.R. SP. No. 114682 (March 29, 2011 Decision)
The Court of Appeals annulled the trial court’s dismissal order and reinstated TTAI’s complaint for replevin, reasoning that Jorgenetics had voluntarily submitted to the trial court’s jurisdiction by filing affirmative applications (e.g., for damages and writ of execution) and by participating in proceedings inconsistent with an objection to personal jurisdiction. The CA observed the inconsistency between the dismissal and the trial court’s continuance of execution/damages proceedings and held certiorari under Rule 65 was the proper remedy to challenge an order dismissing an action without prejudice. Jorgenetics’ motion for reconsideration in the CA was denied.
Divergent Actions at the RTC (Branch 226 and Conflicting Orders)
Subsequent activity in Branch 226 produced a series of conflicting rulings. Branch 226 initially treated subsequent proceedings as without force after the dismissal and quashed the writ of execution. Later, after administrative re‑raffling and changes in presiding judges, one trial judge (Villacorta) enforced the February 4, 2010 dismissal (citing A.M. No. 07‑7‑12‑SC on interruptions by petitions) and ordered return of the properties to Jorgenetics; that judge inhibited and the case was re‑raffled. Another judge (Ruiz) later ordered reinstatement of the case pursuant to the CA decision but also ordered return of the properties to Jorgenetics. These conflicting orders prompted a second CA certiorari petition in CA G.R. SP. No. 130075.
CA Ruling in CA G.R. SP. No. 130075 (October 29, 2014 Decision)
The Court of Appeals granted TTAI’s certiorari, declared the October 18, 2012 trial court order null and void, set it aside, and affirmed the March 15, 2013 order with modification (deleting the portion invalidating the writ of replevin and ordering return of the hogs). The CA held the trial court had committed grave abuse of discretion in refusing to reinstate the complaint following the CA’s earlier decision and in ordering implementation of a void dismissal order, since a void judgment cannot lapse into finality and cannot be executed.
Supreme Court Petitions and TTAI’s Manifestation (May 2, 2017 Trial Court Decision)
Jorgenetics sought review by the Supreme Court of the CA rulings (two consolidated petitions). TTAI later filed a manifestation indicating that on May 2, 2017 the trial court rendered a decision on the merits declaring TTAI the rightful possessor of the hogs and awarding a deficiency judgment of PHP 14,999,980.00 plus interest, fees and costs; TTAI maintained that the finality of that judgment rendered the Supreme Court petitions moot and moved for dismissal.
Issues Framed for Supreme Court Consideration
The Supreme Court distilled the main issues as: (a) whether the petitions were moot in light of the final merits decision; (b) whether Jorgenetics’ petitions should be dismissed for defects in verification and certification of non‑forum shopping; (c) whether the February 4, 2010 dismissal became final and executory after the 15‑day appeal period under Rule 41; (d) whether Jorgenetics’ filing of an application for damages and motion for writ of execution constituted voluntary submission to the trial court’s jurisdiction despite defective service; and (e) whether the return of the hogs seized under the writ of replevin was proper.
Supreme Court’s Analysis on Mootness and Justiciability
The Court held the petitions were not moot. The central question—whether the trial court acquired jurisdiction over Jorgenetics or whether the February 4, 2010 dismissal was void—remained live because a ruling in Jorgenetics’ favor would nullify the trial court’s final merits judgment. The Court reiterated that judgments rendered by a tribunal without jurisdiction over the person are null and void, that a void judgment may be attacked at any time, and that voidness prevents finality in the sense that it remains subject to collateral or direct attack. Consequently, the existence of a merits judgment in favor of TTAI did not render the jurisdictional issues moot.
Verification and Certification (Authority of Corporate Officer; Date Variance)
The Court held that the chairperson and president of a corporation may sign verification and certification against forum shopping without need of a prior board resolution; any defect in authority can be cured by subsequent ratification via board resolution. The Court also ruled that a variance between the verification date and the petition filing date is not necessarily fatal if the verification satisfies the Rule’s objective—assurance of good faith and veracity—because the Rules do not demand an exacting ritualistic reading requirement. Thus, Jorgenetics’ verifications were sufficient and the petitions were not dismissed on these procedural grounds.
Proper Remedy: Appeal vs. Special Civil Action (Rule 41 and Rule 65 Distinction)
The Court affirmed that an order dismissing an action without prejudice is not appealable under Rule 41 and must be questioned by an appropriate special civil action under Rule 65. Because the February 4, 2010 dismissal was without prejudice, TTAI’s filing of a Rule 65 petition to assail that dismissal was the correct remedy. Moreover, TTAI’s timely motion for reconsideration and subsequent Rule 65 petition prevented the February 4 order from attaining finality. The Court rejected Jorgenetics’ contention that the dismissal had become final and unassailable before the Rule 65 challenge.
Voluntary Submission to Jurisdiction by Affirmative Acts (Application for Damages and Other Acts)
The Supreme Court endorsed the CA’s finding that Jorgenetics voluntarily submitted to the trial court’s jurisdiction by seeking affirmative relief from the court—specifically by filing an application for damages against the replevin bond and motions incident to execution, and by participating in related proceedings without reserving an objection to jurisdiction. The Court reiterated settled principles: jurisdiction by service of summons is primary, but a defendant who voluntarily appears or seeks affirmative relief is deemed to have submitted to the court’s personal jurisdiction; a conditional or special appearance is the exception but requires an explicit and une
...continue readingCase Syllabus (G.R. No. 219071)
Procedural Posture and Consolidated Petitions
- Two consolidated Petitions for Review on Certiorari under Rule 45 were filed before the Supreme Court: G.R. No. 201044 and G.R. No. 222691.
- G.R. No. 201044 challenged the Court of Appeals (CA) March 29, 2011 Decision and February 29, 2012 Resolution in CA-G.R. SP. No. 114682 that set aside the trial court’s February 4, 2010 Order and reinstated Thick & Thin Agri-Products, Inc.’s (TTAI) complaint for replevin (Civil Case No. Q-08-63757).
- G.R. No. 222691 challenged the CA’s October 29, 2014 Decision and January 8, 2016 Resolution in CA-G.R. SP No. 130075, which found the trial court to have acted with grave abuse of discretion by refusing to reinstate the complaint for replevin and ordering implementation of the February 4, 2010 Order despite the CA’s March 29, 2011 Decision in CA G.R. SP. No. 114682.
- The Supreme Court ultimately denied both Petitions for lack of merit and affirmed the cited CA decisions and resolutions.
Factual Antecedents (Parties, Agreement, Chattel Mortgage, and Complaint)
- On November 10, 2008, TTAI filed a complaint for replevin with damages against Jorgenetics Swine Improvement Corporation (Jorgenetics), seeking possession of 4,765 heads of hogs subject to a chattel mortgage.
- TTAI alleged an agreement in which TTAI supplied, on credit, feed and other supplies for Jorgenetics’ hog-raising business; the outstanding obligation was Php20,000,000.00.
- As security for the obligation, Jorgenetics executed a chattel mortgage over its hog livestock inventories in favor of TTAI.
- TTAI alleged that, despite delivery of supplies and demands for payment, Jorgenetics failed to pay, and that as mortgagee TTAI was entitled to immediate possession of the mortgaged livestock wrongfully withheld by Jorgenetics.
- TTAI prayed for a writ of replevin to seize the hogs, adjudication of rightful possession to TTAI, or alternatively payment of Php20,000,000.00 with interest, and for damages, attorney’s fees, and costs.
Initial Trial Court Actions: Writ of Replevin, Service, and Motion to Dismiss
- The case was raffled to the Regional Trial Court (RTC), Quezon City, Branch 92; the next day the trial court issued a writ of replevin and required Jorgenetics to post a bond of Php40,000,000.00.
- The writ of replevin was served on May 29, 2009 at petitioner’s farm through purchasing officer Rowena Almirol, who refused acknowledgment; the return stated the 4,765 hogs were seized and delivered to respondent.
- Jorgenetics filed a motion to dismiss on the ground of invalid service of summons, asserting service at its farm in Rizal rather than its place of business in Quezon City and lack of adequate justification by the sheriff for substituted service on Almirol; it also sought quashal of the writ and that the bond be made wholly answerable for alleged damages.
- The case was re-raffled to Branch 93 and subsequently to Branch 75.
Trial Court Dismissal and Post-Dismissal Proceedings
- On February 4, 2010 the trial court (Presiding Judge Alexander S. Balut, Branch 75) issued an Order dismissing the complaint for replevin for failure to acquire jurisdiction over Jorgenetics due to invalid service; the Order directed return of properties seized by virtue of the writ of replevin.
- TTAI’s motion for reconsideration was denied by the trial court.
- Jorgenetics filed, on June 18, 2010, a Motion for the Issuance of a Writ of Execution with Application for Damages against the replevin bond, alleging damages from alleged wrongful seizure and vowing to present proof at hearing.
- The trial court set hearing on the application for damages and ordered TTAI to file comment/opposition and Jorgenetics to reply within the same period.
- While proceedings continued, TTAI pursued extrajudicial foreclosure of the chattel mortgage; after winning the public auction, a certificate of sale of the hogs was issued in TTAI’s favor.
TTAI’s Petition for Certiorari before the Court of Appeals (CA G.R. SP. No. 114682)
- Aggrieved by the trial court’s actions in taking cognizance of the application for damages and continuing proceedings despite dismissal, TTAI filed a Rule 65 petition for certiorari against Jorgenetics and Judge Balut in CA G.R. SP. No. 114682.
- TTAI argued the trial court improperly proceeded “in the guise of execution proceedings” despite the dismissal and prayed for annulment of the February 4, 2010 and May 6, 2010 Orders dismissing the complaint for replevin, alleging Jorgenetics had voluntarily submitted to jurisdiction.
- While CA G.R. SP. No. 114682 was pending, the trial court, in an October 6, 2010 Order, resolved the application for damages against the replevin bond and motion for writ of execution: the court ordered Jorgenetics to present evidence of damages, opined the February 4, 2010 order had become final and executory due to TTAI’s failure to appeal, and stated Jorgenetics was entitled to damages against the replevin bond given impossibility of returning hogs.
- The trial court later granted Jorgenetics’ motion for issuance of a writ of execution and issued the writ on January 18, 2011; Jorgenetics filed an urgent ex-parte motion for deposit of auction proceeds, which Judge Balut granted and ordered deposit with the Clerk of Court pending hearing on damages.
- TTAI moved to quash the writ of execution and for reconsideration and voluntary inhibition of Judge Balut, which were denied.
Court of Appeals Decision in CA-G.R. SP. No. 114682 (March 29, 2011) and Aftermath
- On March 29, 2011 the CA issued a Decision annulling and setting aside the assailed orders of RTC Branch 75 and ordered TTAI’s complaint for replevin reinstated; the CA remanded the case for further proceedings.
- The CA’s reasoning included that Jorgenetics voluntarily submitted to the trial court’s jurisdiction by filing an application for damages and motion for issuance of a writ of execution without objecting to jurisdiction, and that dismissal without prejudice is inconsistent with the trial court’s conduct of trial-like proceedings on damages.
- Jorgenetics moved for reconsideration of the CA decision; the CA denied reconsideration in a February 29, 2012 Resolution.
- Jorgenetics filed G.R. No. 201044 contesting the CA’s reinstatement of the replevin case.
Proceedings in the Trial Court After CA Decision; Fragmented Rulings and Re-Raffles
- Following Judge Balut’s inhibition, the case was raffled to Branch 226 (Judge Ma. Luisa C. Quijano-Padilla). In an April 29, 2011 Resolution Branch 226 granted TTAI’s motion for reconsideration of Judge Balut’s deposit-order and motion to quash writ of execution, holding subsequent proceedings after the dismissal were without force and effect and that recovery under the February 4, 2010 Order must be sought in a separate proceeding.
- Jorgenetics filed a separate petition for writ of possession with Branch 98, which was dismissed due to finality of the February 10, 2010 Order; Branch 98 opined Branch 226 retained residual jurisdiction to carry into effect the February 10, 2010 Order, prompting Jorgenetics to file a Motion for Writ for Execution and/or Writ of Possession dated January 13, 2012.
- On May 7, 2012 Branch 226 denied Jorgenetics’ motion for writ/execution and ordered reinstatement of the case and for Jorgenetics to file its answer to the complaint for replevin, taking heed of the CA’s March 29, 2011 Decision.
- Jorgenetics moved for reconsideration; TTAI moved to declare Jorgenetics in default for failure to file answer.
- Presiding Judge Quijano-Padilla’s appointment to the CA led to designation of Judge Cleto R. Villacorta as Presiding Judge of Branch 226.
- On October 18, 2012 Judge Villacorta granted Jorgenetics’ motion for reconsideration, denied TTAI’s motion to declare default, and modified the May 7,