Case Summary (G.R. No. 224972)
Antecedent Facts
The conflict originated on July 23, 2009, when the respondent bank filed a complaint against the three individuals due to Jonathan Lim's failure to meet his loan obligations totaling approximately PHP 5.18 million as of December 17, 2007. To secure the loans, a continuing suretyship was executed by Carolina Lim and Ng Ching Ting, while a parcel of land in Dasmariñas, Cavite, was mortgaged. Following Jonathan's defaults, the bank initiated an extrajudicial foreclosure of the property, but the proceeds from the auction did not cover the total debt, resulting in a collection suit against the three individuals.
Procedural History
The petitioner, Ng Ching Ting, filed a motion to dismiss the case on November 23, 2009, citing several grounds, including a defective certification of non-forum shopping and an allegedly falsified suretyship agreement. The Regional Trial Court (RTC) denied this motion on September 20, 2010. Following inaction on the case, the RTC, on its own motion, dismissed the case on August 11, 2011, for failure to prosecute, prompting the respondent to file a motion for reconsideration a month later, which was initially dismissed for being filed out of time.
RTC Ruling
In an order dated November 16, 2012, the RTC granted the respondent’s motion for reconsideration, determining that the delay was due to the resignation of key in-house counsels and thus warranted a reversal of the dismissal. The RTC concluded that the dismissal was unwarranted given the circumstances that had affected the respondent's diligence.
CA Ruling
The Court of Appeals (CA) upheld the RTC’s decision affirming the lifting of the dismissal in its September 29, 2015, ruling, stating that the trial court had the discretion to relax procedural rules to ensure substantial justice, a principle echoed in its resolution denying reconsideration in June 2016.
Supreme Court Ruling
The Supreme Court reviewed the CA's affirmation, highlighting that procedural rules must be adhered to and observed as they are designed to prevent delays in judicial procedures. The Court criticized the CA for enabling the respondent's lack of due diligence and emphasizing that the respondent’s inaction over several months constituted a failure to prosecute. The Supreme Court ruled that the RTC had gravely ab
...continue readingCase Syllabus (G.R. No. 224972)
Case Overview
- The case is a Petition for Review on Certiorari under Rule 45, filed by Ng Ching Ting, challenging the Decision dated September 29, 2015, and Resolution dated June 1, 2016, by the Court of Appeals (CA) in CA-G.R. SP No. 128864.
- The petitioner, Ng Ching Ting, also known as Richard Ng, is being pursued for a deficiency in loan payments owed to Philippine Business Bank, Inc. following the foreclosure of a mortgaged property.
Antecedent Facts
- On July 23, 2009, Philippine Business Bank filed a Complaint for Recovery of Sum of Money against Jonathan Lim, Carolina Lim, and Ng Ching Ting, arising from several loans taken by Jonathan Lim.
- The loans were secured by a continuing suretyship agreement executed by both Carolina and the petitioner, and a real estate mortgage over property in Dasmariñas, Cavite.
- Jonathan defaulted on loan payments, prompting the bank to initiate an extrajudicial foreclosure on November 6, 2007, resulting in a public auction that yielded only P915,600.00, insufficient to cover the total obligation of P5,183,416.40.
- After the auction, the bank demanded payment of the deficiency, which was refused by the defendants, leading to the filing of a collection suit.
Motion to Dismiss
- On November 23, 2009, Ng Ching Ting filed a Motion to Dismiss, citing defective certification of non-forum shopping, allegations of a falsified suretyship agreement, and lack of summons served to the principal debtor.
- The Regional Trial Court (RTC) de