Title
Supreme Court
Systems and Plan Integrator and Development Corp. vs. Municipal Government of Murcia
Case
G.R. No. 217121
Decision Date
Mar 16, 2016
SPIDC's case dismissed for failure to prosecute; improper appeal mode used. Counsel's negligence binds client, but dismissal modified to without prejudice.

Case Summary (G.R. No. 217121)

Facts

In August 2010, SPIDC retained the services of Kapunan Lotilla Garcia and Castillo Law Offices to pursue a civil collection case and an administrative case against the Municipal Government of Murcia. As per their agreement, SPIDC was responsible for paying the law office various fees, which were duly acknowledged through official receipts issued by the law office for payments made on February 4, 2011, and February 17, 2011. Subsequently, the law office instituted the collection case against the respondent, referred to as Civil Case No. Q-11-68595, with filing fees paid by SPIDC amounting to Php 185,146.00 and Php 277,594.00 on January 4, 2011.

However, SPIDC faced a setback when, on July 23, 2012, the RTC dismissed the case due to SPIDC's failure to prosecute, attributed to the law office's failure to appear in the proceedings as directed. Following the dismissal, SPIDC was informed by a representative of the law office that a motion for reconsideration would be filed. Instead, on September 21, 2012, SPIDC received a motion from the law office seeking to withdraw as counsel for non-payment of services, which the RTC granted on October 19, 2012. Following this, SPIDC subsequently engaged Atty. Aries B. Mirandilla, who filed a belated motion for reconsideration against the RTC’s dismissal order, which the RTC ultimately denied on October 16, 2013.

Issues

SPIDC then sought relief from the Court of Appeals (CA), which dismissed its petition for certiorari, ruling that it was procedurally flawed and incorrectly filed under Rule 65 instead of Rule 41, the latter being applicable for appeals from a judgment on the merits. The key issues presented by SPIDC to the Court include whether the RTC's dismissal violated its substantive rights and whether this violation constituted grave abuse of discretion amounting to a lack or excess of jurisdiction.

Ruling of the Court

The Supreme Court found no merit in SPIDC's petition, emphasizing that the appeal to the CA was improperly filed. It cited the precedent in Young v. Spouses Sy, which holds that dismissals for failure to prosecute are deemed final orders that operate as a judgment on the merits. The Court reiterated that such dismissals should be appealed, not contested through certiorari, as the latter is only available when there is no other legal remedy. Add

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