Title
Supreme Court
SM Prime Holdings, Inc. vs. Maranon, Jr.
Case
G.R. No. 233448
Decision Date
Nov 18, 2020
SMPHI sought nullity of ALI's contracts, alleging bidding fraud, but committed forum shopping by filing in multiple forums, leading to dismissal by the Supreme Court.

Case Summary (G.R. No. 233448)

Procedural History

SMPHI filed a petition appealing the resolutions of the Regional Trial Court (RTC) Branch 48 in Bacolod City, which dismissed SMPHI's complaint based on the ground of forum shopping. The RTC determined that SMPHI had previously brought similar issues before other legal forums, leading to conflicting assessments of the same claims.

Background Facts

On April 8, 2011, SMPHI offered to lease four properties owned by the Province of Negros Occidental. Following this offer, the Province publicly auctioned its properties on June 8, 2011, but the initial bidding was unsuccessful. In the second bidding attempt on July 7, 2011, both SMPHI's and ALI's bids were found to be below the appraised property value, leading the Committee to declare the bidding a failure. Subsequently, a negotiated sale was conducted, resulting in the province entering a Deed of Conditional Sale and Contract of Lease with ALI.

Claims and Allegations

SMPHI later filed a complaint seeking the nullification of the Deed of Conditional Sale and Contract of Lease, alleging that the bidding process was manipulated in favor of ALI, constituting fraud. SMPHI based its argument on Article 1409 of the Civil Code, contending that the Province violated existing procurement laws and auditing regulations throughout the bidding process.

Defenses by Respondents

The respondents, including ALI and members of the Committee, countered by asserting that SMPHI was engaged in forum shopping, as it had already filed related petitions in the Commission on Audit (COA) and other courts. They argued that the essence of SMPHI's complaints was already adjudicated and that the legal issues were overlapping.

RTC's Findings on Forum Shopping

The RTC found merit in the respondents' claims regarding forum shopping, affirming that SMPHI's case before the RTC sought to achieve the same legal ends as its prior complaints. The RTC highlighted the commonality of the factual basis and legal issues across the various cases brought forth by SMPHI.

Supreme Court's Ruling

The Supreme Court upheld the RTC's dismissal of SMPHI's complaint. Key to the Court's decision was the reiteratio

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