Title
Lazaro vs. Brewmaster International, Inc.
Case
G.R. No. 182779
Decision Date
Aug 23, 2010
Victorina Lazaro challenged Brewmaster's claim for unpaid goods, alleging no transaction. CA ruled in favor of Brewmaster due to Lazaro's non-appearance, affirming sufficient cause of action despite disputed invoices. SC upheld CA's decision.

Case Summary (G.R. No. 182779)

Complaint Background

The complaint alleged that between February 2002 and May 2002, the defendants obtained beer and other products on credit from the respondent amounting to Php 138,502.92, but failed to fulfill their payment obligations despite repeated demands, as evidenced by correspondence attached to the Complaint, including multiple demand letters. The sales invoices indicated that the goods were delivered to “Total” and received by an individual named Daniel Limuco. Furthermore, the complaint highlighted an agreed interest of 24% for overdue accounts and stipulated that litigation would be confined to the courts of Makati City.

Initial Court Proceedings

Prescillo Lazaro countered the claims by denying knowledge of the obligation and asserting that he had not authorized the petitioner to make purchases from the respondent. Both defendants maintained their stance that the true purchaser of the goods listed in the sales invoices was Total, thus contesting their liability. The MeTC scheduled a preliminary conference; however, neither Petitioner nor Prescillo appeared, leading the court to submit the case for decision.

Decision of the MeTC

On August 22, 2006, the MeTC dismissed the complaint, noting the respondent's failure to meet the burden of proof necessary to establish its claim. The MeTC concluded that the sales invoices did not demonstrate that the petitioner or her husband received or were responsible for the goods. The invoices merely indicated that the products were sold to Total, without any direct evidence linking the debts to them.

Appeal to the Regional Trial Court

Following the dismissal, the respondent appealed to the Regional Trial Court (RTC). The RTC upheld the MeTC's decision, agreeing that the evidence presented by the respondent, which included claims of transactions with the petitioners, did not substantively support their case. The RTC determined the inclusion of additional evidence in the appeal posed a violation of due process for the defendants and thus affirmed the earlier ruling of the MeTC.

Court of Appeals Review

Respondent subsequently sought relief from the Court of Appeals, where they succeeded in reversing the RTC's decision. The CA determined that the trial court had erred in not properly addressing the implications of the defendants' non-appearance at the preliminary conference, which under Section 6 of the Revised Rules of Summary Procedure could imply an admission of the allegations in the complaint. The CA emphasized that the judgment should be based solely on the facts alleged in the complaint and not the evidentiary matters attached.

Supreme Court Decision

The petitioner's arguments centered on the interpretation of several provisions, especially the assertion that a complaint must state a valid cause of action. The Supreme Court ultimately affirmed the CA's decision, clarifying that the complaint adequately stated grounds for a cause of action against the petitioner and her

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