Title
Zambales Academy, Inc. vs. Villanueva
Case
G.R. No. L-19884
Decision Date
May 8, 1969
Zambales Academy sued Villanueva for fraud; default judgment awarded damages. Annulment attempts barred by res judicata; Supreme Court upheld finality, citing intrinsic fraud by counsel.

Case Summary (G.R. No. 156819)

Background of the Case

In a preceding dispute, Civil Case No. 1760, Zambales Academy filed a suit against Ciriaco Villanueva for damages, claiming he had abused the trust placed in him as director. Villanueva counterclaimed for moral and exemplary damages. The lower court declared Zambales Academy in default for failing to answer the counterclaim, leading to a ruling favoring Villanueva, which included monetary damages and attorney's fees. Following a series of appeals process, Zambales Academy contested the Final Judgment that awarded these damages to Villanueva, alleging the decision was made without supporting evidence.

Procedural Posture

Zambales Academy initially appealed the decision in Civil Case No. 1760, and after the execution of the ruling on the counterclaim, challenged this execution in the Court of Appeals. The Court of Appeals dismissed their petition on the grounds that the judgment had already become final and executory due to Zambales Academy’s default. The Supreme Court then reviewed allegations brought forth by Zambales Academy concerning the lower court's actions, including a purported lack of evidence for the counterclaim.

Supreme Court's Reasoning

In its March 28, 1961 decision in G.R. No. L-16371, the Supreme Court upheld the lower court's judgment, noting that while the trial court may have made errors in weighing the evidence, it did not amount to a failure of duty deserving of appellate review. The court reiterated the principles of res judicata, maintaining that Zambales Academy could not relitigate the validity of the counterclaim's damages, as these issues had already been decided definitively.

Current Proceedings

Subsequently, Zambales Academy filed Civil Case No. 2386, seeking to annul the judgment based on allegations that it was misled by its attorney and was, therefore, unfairly declared in default regarding the counterclaims. Villanueva countered that the matter had already been resolved in prior judgments and that the case should be dismissed for lack of a cause of action.

Lower Court’s Findings

The lower court dismissed Zambales Academy’s complaint, ruling that the previous decisions by the Supreme Court barred the present action and that claims of attorney misconduct did not invalidate the judgments. The court clarified that any grievances regarding counsel's representation pertained to a separate legal recourse rather than an avenue to annul an already adjudicated ruling.

Final Supreme Court Decision

Upon reviewing the lower court’s dismissal, the Supreme Court affirmed the ruling, emphasizing the finality of the earlier judgments related to Villanueva’s counterclaims and reiterating Zambales Academy's failure to exercise it

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