Case Summary (G.R. No. 153690)
Factual and Procedural Antecedents
LLDC was established by Paterno Sr. and his brothers to manage family real estate. In 1997, the corporation's Board issued 600,000 shares of stock, which David and others contested as undervalued. This led to David et al. filing a complaint on August 14, 2000, in the Regional Trial Court (RTC) of Cebu City (Civil Case No. CEB-25502), seeking nullification of the share issuance, receivership, and dissolution of LLDC due to alleged abuse of power by the Lu Ym family.
Initial Court Proceedings
Following the complaint, the Lu Ym family moved to dismiss the case, arguing lack of compliance with forum shopping rules. The RTC denied their motion but later placed LLDC under receivership. The Lu Ym family subsequently appealed to the Court of Appeals (CA), challenging various RTC resolutions. The CA originally dismissed their appeal due to procedural issues but later reinstated the petition. Ultimately, the CA ruled in favor of the Lu Yms, dismissing David’s complaint on grounds of non-compliance with rules on forum shopping.
Appeals and Subsequent Actions
David Lu, aggrieved by the CA's ruling, filed a petition before the Supreme Court (G.R. No. 153690). Concurrently, the Lu Ym family sought to lift the receivership, leading to a series of motions and restraining orders as the receivership proceedings were placed on hold while David's appeal was pending. Notably, multiple petitions and motions were filed by both parties, reflecting escalating tensions and legal complexities.
Resolution of Complaints and Issues
The Supreme Court examined whether the original complaint was dismissible due to procedural defects regarding forum shopping and payment of correct docket fees. It was determined that the procedural issues raised were moot due to the subsequent admission of an amended complaint by the RTC, effectively superseding the original complaint.
Jurisdictional and Advocacy Considerations
The Court emphasized that despite the Lu Ym family raising issues about the jurisdiction over payment of docket fees, they were estopped from contesting after active participation in the RTC proceedings. Jurisdiction is vested following proper payment, and since the initial complaint sought non-monetary relief, the docket fees were assessed c
...continue readingCase Syllabus (G.R. No. 153690)
Case Background
- The case involves three consolidated petitions challenging decisions and resolutions from the Court of Appeals (CA) in relation to intra-corporate disputes concerning Luym Development Corporation (LLDC).
- Petitioner David Lu seeks to annul the CA Decision dated December 20, 2001, which dismissed his complaint for non-compliance with rules on non-forum shopping.
- The Lu Ym family members and LLDC contest the CA Decision dated February 27, 2003, which ordered the Regional Trial Court (RTC) to cease proceedings on LLDC's receivership.
- John Lu Ym and LLDC question the CA's denial of their request for a writ of preliminary injunction in a separate case.
Factual and Procedural Antecedents
- LLDC was established by Paterno Lu Ym, Sr., and his brothers to manage family real estate.
- In 1997, LLDC's Board of Directors authorized the issuance of 600,000 shares at P100.00 each, primarily subscribed by the Lu Ym family.
- David Lu and others filed a complaint on August 14, 2000, seeking the nullification of these shares, alleging they were issued at undervalued prices, which constituted an abuse of power by the Lu Ym family members.
- David Lu requested the appointment of a receiver to protect corporate interests while the case was pending.
- The Lu Ym family moved to dismiss the complaint over alleged non-compliance with court rules, specifically regarding the certificate of non-forum shopping.