Title
Remington Industrial Sales Corp. vs. Court of Appeals
Case
G.R. No. 133657
Decision Date
May 29, 2002
Remington sued ISL, Ferro, and British Steel for damages. British Steel moved to dismiss, but Remington amended the complaint as a matter of right. CA dismissed the case; SC reversed, upholding Remington’s right to amend and avoiding multiplicity of suits.

Case Summary (G.R. No. 133657)

Facts

Remington filed a complaint for sum of money and damages against ISL, impleading Ferro and British Steel as alternative defendants under Rule 3 §13. The complaint alleged breach of contract but contained no specific averment against British Steel.

Trial Court Proceedings

ISL and British Steel separately moved to dismiss for failure to state a cause of action. On April 7, 1997, the RTC denied both motions and a subsequent motion for reconsideration. ISL filed its answer; British Steel instead petitioned for certiorari and prohibition in the Court of Appeals.

Court of Appeals Proceedings

British Steel argued that the complaint lacked any factual or legal allegations against it. Remington sought to amend its complaint as a matter of right under Rule 10 §2. The trial court noted the amended complaint and suspended proceedings pending resolution of the certiorari petition. On February 24, 1998, the Court of Appeals granted the writ, finding grave abuse of discretion in denying the motion to dismiss, and ordered dismissal of the complaint against British Steel without prejudice. A motion for reconsideration was denied on April 28, 1998.

Issue

Whether a plaintiff may amend a complaint as a matter of right under Rule 10 §2 after a defendant has filed a special civil action to dismiss it but before any answer has been served.

Applicable Law

  • Rule 10 §2: A party may amend its pleading once as a matter of right at any time before a responsive pleading is served.
  • Rule 10 §3: Further amendments after an answer require leave of court to prevent prejudice to the defending party.
  • Amendment of pleadings is favored to decide cases on substantive merits, avoid multiplicity of suits, and conserve judicial resources.

Analysis

Under Rule 10 §2, Remington retained the absolute right to amend its complaint against British Steel before an answer. The pendency of a motion or petition attacking the complaint’s sufficiency does not extinguish this right. Denying the amendment would render Rule 10 §2 meaningless, for any defendant could moot it by

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