Title
Macedonio vs. Ramo
Case
G.R. No. 193516
Decision Date
Mar 24, 2014
Petitioner sought rescission, then specific performance, after discovering property liens. SC ruled dismissal improper, remanded for merits, prioritizing justice over technicalities.

Case Summary (G.R. No. 193516)

Factual Antecedents

Civil Case No. 5703-R was initiated by the petitioner on January 6, 2004, against respondent Catalina Ramo for the rescission of a contract concerning the purchase of a portion of Ramo's unregistered lot. The petitioner alleged that Ramo assured her that the property was lien-free, but objections arose when it came to light that there were existing liens. The initial suit was dismissed on April 11, 2007, due to failure to prosecute.

Subsequent to the dismissal, Ramo secured ownership of the property and subdivided it, transferring portions to other respondents. Meanwhile, in 2008, the petitioner sought to compel Ramo to return her advance payment of P850,000.00 but faced dismissals based on procedural grounds.

Civil Case No. 7150-R Initiation

On April 21, 2010, the petitioner filed a new civil complaint (Civil Case No. 7150-R) for specific performance and annulment of documents arising from the failed initial transaction. Ramo’s response included a motion to dismiss, alleging that the new complaint constituted forum-shopping given the pending DENR protest and prior terminated case.

Court Rulings and Basis

On July 20, 2010, the Baguio RTC dismissed Civil Case No. 7150-R with prejudice, citing violations of procedural rules including failure to disclose the existence of the previously terminated case and the DENR protest. The trial court interpreted the suits as stemming from the same cause of action regarding Ramo's conduct relating to the property sale.

Petitioner’s Arguments

The petitioner contended that the prior case had not been decided on its merits, and thus did not bar further action in the second case. She maintained that there was no intent to deceive the court, arguing that the causes of action in the Civil Case No. 7150-R and the DENR protest were distinctly different.

Respondent’s Position

The respondents maintained that the petitioner’s failure to disclose previous cases violated procedural rules against forum-shopping and established litis pendentia. They asserted that the trial court’s dismissal was warranted based on the argument that the two cases were essentially brought for the same underlying issues.

Court’s Ruling

The Supreme Court granted the petition, finding that the trial court had erred in dismissing Civil Case No. 7150-R. It determined that a dismissal for failure to submit a compromise agreement constituted a depriva

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