Case Summary (G.R. No. 138137)
Factual Background
The parties contracted under a Dealership Agreement in which Asia Brewery, Inc. manufactured, distributed, and sold beer and Perla S. Zulueta acted as a dealer and operator of an outlet selling respondent’s beer products; disputes arose concerning alleged breaches of the Dealership Agreement and unpaid deliveries. Petitioner commenced litigation in Iloilo for breach of contract, specific performance, and damages; while respondent later instituted an action in Makati for collection of P463,107.75, the asserted value of delivered beer products.
Procedural History
While the Iloilo case (Civil Case No. 20341) remained pending, respondent filed Makati Civil Case No. 94-2110; petitioner moved to dismiss the Makati action for splitting the cause of action and multiplicity of suits, and subsequently moved for consolidation. The Makati RTC, Branch 142, presided by Judge Jose Parentala Jr., ordered consolidation on February 13, 1997 and denied respondent’s motion for reconsideration on May 19, 1997. Respondent filed a petition for certiorari with the CA on August 21, 1997; the CA annulled the Makati RTC consolidation orders by Decision dated August 4, 1998 and denied reconsideration on February 23, 1999. Petitioner then filed the present petition for review on certiorari under Rule 45.
Issues Presented
Petitioner framed two principal issues: whether the Makati RTC orders of February 13, 1997 and May 19, 1997 were already final and executory such that the CA lacked jurisdiction to entertain respondent’s certiorari petition given the change from a ninety-day to a sixty-day reglementary period under the 1997 Revised Rules of Civil Procedure; and, independently, whether the Makati RTC correctly consolidated the Makati case with the earlier-filed Iloilo case on the ground that the obligation sought in the Makati action formed part of the subject matter of the Iloilo case.
Parties’ Contentions
Petitioner contended that respondent’s CA petition was filed after the sixty-day period provided by the 1997 Rules and therefore should have been dismissed; that the sworn certification against forum-shopping was defective because signed by counsel rather than by an officer of the corporate party in violation of Supreme Court Circular No. 28-91; and that respondent failed to explain why service was not personal in contravention of Section 11, Rule 13. Respondent countered that the earlier judicial ninety-day period governed, rendering its filing timely; that substantial compliance with the certification requirement sufficed because corporate agents and counsel may certify; and that personal service was excused by geographical separation between the parties and their counsel.
Ruling of the Court
The petition was granted. This Court reversed and set aside the CA Decision and reinstated the Makati RTC orders dated February 13, 1997 and May 19, 1997. The Court held that respondent’s petition before the CA should not have been given due course because it was filed beyond the sixty-day reglementary period established by the 1997 Revised Rules of Civil Procedure, and because it failed to comply with the certification against forum-shopping and the requirement for personal service or a written explanation for nonpersonal service.
Legal Reasoning on Timeliness and Procedure
The Court reiterated the settled rule that procedural laws, being remedial, apply to pending proceedings and that rules of procedure may be modified to take effect immediately so long as vested rights are not affected, citing Frivaldo v. Commission on Elections and other authorities. The sixty-day period under the 1997 Rules for an original action for certiorari was remedial and applicable on July 1, 1997; respondent thus had until July 22, 1997 to file but filed on August 21, 1997. The Court observed that there are no vested rights in procedural rules nor a vested right to the earlier ninety-day judicial practice. On the certification against forum-shopping, the Court held that the requirement to sign the certification applies to juridical persons and must be satisfied by a duly authorized director or officer who has knowledge of other pending cases; a retained counsel’s signature did not suffice absent circumstances akin to in-house counsel having authority and actual knowledge, as recognized in Robern Development Corporation v. Quitain. Regarding service, the Court enforced Section 11, Rule 13: personal service is the general rule and resort to other modes demands a written explanation; absence of such explanation mandates expungement of the pleading and may render the petition not filed, as held in Solar Team Entertainment, Inc. v. Ricafort.
Legal Reasoning on Consolidation Merits
On the merits of consolidation, the Court disagreed with the CA’s conclusion that no common issue of law or fact existed between the two cases. The Court reasoned that the Makati collection action for unpaid beer products was an incident of the central dispute over the binding force and alleged breach of the Dealership Agreement that the Iloilo court was adjudicating; petitioner’s asserted defense to nonpayment claimed that r
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Case Syllabus (G.R. No. 138137)
Parties and Procedural Posture
- Perla S. Zulueta filed Civil Case No. 20341 in the Regional Trial Court (RTC) of Iloilo, Branch 22, for Breach of Contract, Specific Performance and Damages against Asia Brewery, Inc..
- Asia Brewery, Inc. filed Civil Case No. 94-2110 in the Makati RTC, Branch 66, for collection of P463,107.75 for beer deliveries to petitioner.
- The Makati case was reassigned to RTC, Makati, Branch 142, where Judge Jose Parentala Jr. ordered consolidation with the Iloilo case on February 13, 1997 and denied reconsideration on May 19, 1997.
- Asia Brewery, Inc. filed a Petition for Certiorari with the Court of Appeals (CA) challenging the Makati RTC orders, and the CA set aside the consolidation orders.
- Petitioner sought review by certiorari under Rule 45 of the Rules of Court from the CA decision and the CA resolution denying reconsideration.
Key Facts
- The parties’ contractual relations arose from a Dealership Agreement under which petitioner acted as dealer and operator of an outlet selling respondent's beer products.
- Petitioner alleged that respondent breached the Dealership Agreement and filed the Iloilo complaint on March 30, 1992.
- Respondent sought to collect unpaid beer deliveries in Makati on July 7, 1994, during the pendency of the Iloilo case.
- Petitioner moved to dismiss the Makati case for splitting the cause of action and for multiplicity of suits, and later moved for consolidation which the Makati RTC granted.
- The CA held that there was no common issue of law or fact between the two cases and annulled the consolidation orders, prompting this appeal.
Issues Presented
- Whether the CA should have dismissed respondent's petition for certiorari as untimely under the 1997 Revised Rules of Civil Procedure and as noncompliant with filing requirements.
- Whether the Makati RTC correctly consolidated the Makati case with the earlier-filed Iloilo case on the ground that the obligations in both cases were related and arose from the same Dealership Agreement.
Ruling and Disposition
- The petition for review was granted and the CA decision annulling the conso