Title
Supreme Court
Monterey Foods Corp. vs. Eserjose
Case
G.R. No. 153126
Decision Date
Sep 11, 2003
Business dispute over unpaid debts and contract breach; default judgment, partial summary judgment upheld; execution allowed as no genuine issues remained.

Case Summary (G.R. No. 153126)

Applicable Law

This case is governed by the 1987 Philippine Constitution as the decision date is September 11, 2003. The relevant procedural rules are found in the Rules of Court, particularly Rules surrounding summary judgments.

Nature of Dispute

The relationship began with respondent purchasing livestock and hogs from petitioner Monterey Foods Corporation for over twelve years, accruing an unpaid balance of approximately P87,434,689.37 due to non-payment. In 1998, the parties entered into a contract growing agreement, which allowed the petitioner to supply livestock for the respondent to manage on his farm in San Jose, Batangas. Disputes arose regarding the performance of contractual duties, leading to respondent's claims against the petitioners for unpaid services totaling P1,280,000.00.

Procedural History

The trial court's pre-trial and subsequent judgment followed a series of proceedings, including the initial failure of the petitioners to appear for the pre-trial conference, which resulted in them being declared in default. The trial court subsequently awarded the respondent the claimed amount, but a motion for new trial by petitioners led to a reversal and re-institution of proceedings, allowing the presentation of new arguments.

Admission of Liability and Partial Summary Judgment

During the hearings, the petitioners acknowledged their liability under the contract growing agreement for a reduced amount of P482,766.88. This judicial admission prompted the trial court to grant a partial summary judgment in favor of the respondent, allowing for the execution of that judgment despite remaining claims in the case. The court found that the absence of genuine issues concerning these admitted amounts warranted the summary judgment.

Issues Raised by Petitioners

Petitioners contended various legal errors, including claims of the Court of Appeals sanctioning an execution of a judgment not final in nature, issues of due process surrounding the summary judgment, and improper proceedings due to alleged lack of an opportunity for a hearing on the motion for summary judgment.

Court's Analysis

The court reaffirmed that summary judgments serve the purpose of expediting cases by eliminating the need for trial when no material facts are genuinely disputed. In this case, it was determined that the petitioners' admission led to the re

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