You are on page 1of 79

Midterm CivPro Transcript 2016

EH 403
November 7

Substantive laws are those laws which create and define substantive rights.
Example: Civil law, Constitution, Criminal law
When we talk about rights here, we refer to rights of life, liberty and property. Substantive law also
defines power and authority like the legislature, executive power and judiciary.
Substantive laws are, of course, not enough. There must also be laws which will provide you remedies
in case these substantive laws are violated. This is what we call procedural laws or also known as
adjective or remedial laws.
What is procedure or remedial in general?
- Since we are talking about rights that are being violated, procedure is the means whereby the
court reaches out to restore rights and remedy wrongs.

There are ways in classifying procedure:


- As to purpose:

o If what is governed is the enforcement of a private right, then we call that civil
procedure. Examples: rights of parents in relation to their children. But if it refers to
the prosecution of offenses, then such procedure is classified as criminal procedure.

- As to formality

o If procedural law sets up a definite process to be observed in enforcing rights, we call


that a formal procedure. This is different from summary procedure which does not
follow certain processes.

Sources of remedial law:


1 Constitution

- When the Constitution says that the Supreme Court has the power to create rules etc.

2 Laws creating the judiciary

3 Laws defining jurisdiction

4 Rules promulgated by the SC

5 Circulars, Administrative orders, internal rules and SC decisions

Scope of remedial law:


- This covers a lot of procedures. Some are criminal procedure, provisional remedies, special
proceedings, rule on evidence, katarungan pambarangay rule, rules on small claims cases,
rules on environmental cases.

There are several powers of Supreme Court. One of which is the adjudicatory power or the exercise of
judicial power.
Judicial power, according to the constitution, is defined as to settle actual controversies involving rights
which are enforceable and demandable and the determination of jurisdiction.
The other power of SC is administrative power or disciplinary power. The SC disciplines lawyers and its
personnel.
Lastly is the rule making power of the SC. This is expressly vested by the Constitution itself. Section 5
par 5 of Article 8 of the Constitution provides the power to promulgate rules concerning pleading
practice and procedure in all courts. This is the source of the rulemaking power of the SC.
However, this rule making power of the SC is subject to certain limitations. It must be:
Simplified and inexpensive procedure for the speedy disposition of cases

Uniform for all courts of the same grade

1
Midterm CivPro Transcript 2016
EH 403
Shall not diminish, increase or modify substantive rights because these rights are sourced from
substantive laws

Can the SC suspend or amend procedural laws?


- There are several times wherein the SC had suspended and amended procedural laws. Their
usual justification is, of course, the demands of justice. Another justification, according to APO
Fruits Corp vs Land bank, is that they create the rules and the authority to create rules carries
with it the authority to suspend or amend it.

What is a court?
- When we talk about a court, we talk about a tribunal, an institution which is defined by the
power vested in it. In short, a court is an institution or a tribunal that is vested with judicial
power.

Lontok vs Battung
- The SC defined court as an entity or body vested with a portion of the judicial power.

- We might ask why only a portion? There are several courts that are created. Only the SC is
created by the Constitution and the rest are created by laws.

- Why is there a need to create other courts aside from the SC? The SC cannot be expected to
be handling and deciding all kinds of cases. There must be an apportionment of labor. Thats
why there is the assignment of only a portion of judicial power to courts.

Court is distinguished from judge


- The authority is vested in the court, not in the judge. But there must be a person presiding in
the court so that such authority can be exercised. It can be decided by a single judge or a
group of judges. Thats why we have collegiate courts and non-collegiate courts. In the
hierarchy of courts, the first two are non-collegiate while the 3 rd and the 4th including special
courts like Sandiganbayan and Court of Tax Appeals are collegiate courts.

Can there be a court without a judge?


- Yes, of course. For example, the judge has retired.

Can there be a judge without a court?


- There used to be judges before without courts. But under the present situation wherein judges
are lacking, this could not be possible.

Hearing vs Trial
- Trial stage is that stage wherein evidence is presented to prove allegations while hearing is not
limited in that stage because it covers other proceedings, like for example, pre-trial.

There are several courts in the Philippines:


Regular courts
- Those courts which are authorized to exercised judicial power in a regular manner

- Example: SC, CA, RTC, MTC

Special courts
- Courts whose authority is limited only to certain types of cases.

- Example: Sandiganbayan

Quasi-judicial bodies
- These are administrative bodies belonging to the executive branch but are given judicial
power. They settle actual controversies involving rights.

- Example: NLRC

2
Midterm CivPro Transcript 2016
EH 403
Courts of original and appellate jurisdiction (Just refer to notes!)
- Original: when the authority vested upon it is to resolve controversies at its commencement or
from the beginning.

- Appellate: the authority to review decisions of other courts.

Constitutional vs Statutory courts


- The SC is the only constitutional court. The rest are created by statutes. What about the
Sandiganbayan which is also mentioned in the Constitution? It does not actually mean that the
Constitution created the Sandiganbayan. The constitution only mentions it.

Courts of law vs courts of equity


- When the resolution of controversies are based on applicable laws, then the court exercising
that authority is a court of law.

- But there instances when there are no applicable laws. However, since courts are vested with
power to settle actual controversies, it must really decide. The basis of its decision would be
equity.

- Here in the Philippines, we do have the combination of both.

Superior courts vs 1st level courts (self-explanatory daw!)


Civil courts vs Criminal courts (Self-explanatory pud!)
- All our courts are civil as well as criminal courts.

Courts of record
- All the proceedings are recorded which is true to all our courts.

Probate courts
- When you settle estate, the court that handles those cases are probate courts.

Principle of judicial hierarchy


- You cannot directly resort to a superior court. The reason is that the SC will not be burden of so
many cases.

Doctrine of judicial stability


- When courts are co-equal, they cannot interfere with the exercise of each others power.

- Illustration: when one RTC is handling the case, you cannot go to other RTC to stop the
proceedings.

Are there inherent powers of the court?


- Section 5 of rule 135: one instance of inherent power is to preserve and enforce order in its
immediate presence. This is done through its contempt power.

- Compel judgment in its orders: in the meaning of judicial power, it includes judgment. If the
court cannot enforce it, then such power would be useless.

- To compel attendance of persons to testify: subpoena power of the courts, otherwise the
administration of justice is at the mercy of individuals.

- To administer oath, to amend and authorize its process.

November 8
Jurisdiction implies authority or power. So when you relate it in courts, what is given to them is the
power to resolve actual controversy. When we talk about jurisdiction of court, it is the power to decide
cases, not only does it does decide cases but also to execute its own judgment.

3
Midterm CivPro Transcript 2016
EH 403
In the case of echegaray vs. sec of justice, it even includes the power of the court over the control of
the execution stage. What happened in this case was, there was a final and executory judgement in a
criminal case. The penalty imposed was death. But so happened there was move in congress to abolish
death penalty. So the lawyers of echegaray asked for the holding in abeyance of the implemenetation
of the death penalty because of the move of congress to abolish death penalty. The government, thru
OSG, objected arguing that the judgement was already final and executory and therefore the court has
already lost its authority over the case, so it has no more authority to entertain whatever is being filed
by the accused and the state. SC ruled that the power to control execution is included in the
jurisdiction that is vested upon the court.
Therefore, when we talk about jurisdiction in relation to courts, we talk about the power to hear and
decide cases and execute judgement. Execution of the judgment includes power to control that
execution.
What is therefore the meaning of final and executory? It is simply that the judgment cannot be
anymore modified. The court loses jurisdiction to change that judgment. But with respect to its
implementation it has that because it is part of its jurisdiction.

How do you determine that the court has jurisdiction over the case? Whether or not that
authority is vested upon the court.

What is the source of that authority? From the Constitution or the law passed by congress. It
does not come from the rule-making power of the SC.

In relation to the exercise of judicial power, congress has very important to play. The roles of
congress in in two folds:

1 Defines, creates, and vests the rights. (substantive law)

2 Congress vests jurisdiction to courts.

Jurisdiction is very important to courts because if the court has no authority to decide and
resolve the case, such proceeding is a null. Hence, the first duty of courts is to determine whether or
not it has jurisdiction to over the case and it can do it without the motion filed by the parties, it can do
it motu proprio. if the courts finds no jurisdiction, courts will dismiss the case. But if it has jurisdiction
over the case, then its duty is to exercise that jurisdiction.
Constitutional Guarantee of Access to Courts and Jurisdiction refers to courts with appropriate
jurisdiction as defined by law. It does not mean that a person can go to any court for redress of
grievances regardless of the nature or value of his claim.
If you talk about the authority to try and decide a case, and you examine for example a
criminal case, what are the elements of that case?
1 parties or litigants or the thing involved;

2. a particular kind or nature (subject matter);


- in criminal procedure, we have learned that in determining the nature of the case is
based on the penalty imposed.
- in civil cases, how do we classify it? One classification is it involves money
(pecuniary estimation), the opposite (not capable of pecuniary estimation) example, you
entered into a contract with X. you performed your obligation to pay but X failed to deliver. What kind
of action are you going to file? Specific performance which is not capable of pecuniary estimation
because what you are asking is the enforcement of the contract of sale. X borrowed money from you
and failed to pay. Then you file an action to collect which is capable of pecuniary estimation.
Another way of classifying civil actions, is with respect to the subject of the action. If it involves
real property such as possession or title thereof its what you called real action. All the rest are
classified as personal action.
Another classification of the case, is your objective in filing a case, whether to bind defendant
or everyone who might want to participate or has interest. Here we classify these action as in
personam or in rem. In personam is a civil action intended to bind a particular defendant. In rem is

4
Midterm CivPro Transcript 2016
EH 403
intended to bind the whole world. Another classification is quasi in rem, that means almost in rem
which such intention is to bind the thing that is subject of the action but there is a defendant
particularly named.
3 issues that are raised or statements or assertions made and controverted by the other

- Issues are an allegation by one party that is denied or contended by the other party.

Elements jurisdiction in civil cases:


- Jurisdiction over the subject matter ;

- Jurisdiction over the person of the parties to the case;

- Jurisdiction over the res; and

- Jurisdiction over the issues.

What happens of one element is missing, there will be irregularity in the exercise of the jurisdiction.
Jurisdiction over the subject matter
We have to distinguish jurisdiction of court over the subject matter and subject matter in
relation to litigation.
Jurisdiction over the subject matter is the power of the court to hear and determine cases
of the general class to which the proceedings in question belong.
Subject matter of the litigation we refer to thing that is the subject of litigation.
Going back to our example awhile ago: contract of sale and specific performance, what is the
general classification of the action in the context of jurisdiction over the subject matter? It is an action
not capable of pecuniary estimation. But when we say, what is the subject matter of the case involves
in litigation? It is the contract of sale. If it is a collection case, the nature of the case is capable of
pecuniary estimation. What is the subject matter of the collection case (litigation)? Money.
How Jurisdiction Over the Subject Matter is Acquired By the Court? It is conferred by law
applicable at the time of the commencement of the action. Not at the time when the cause of
action exists or when there is violation. If it is conferred by law, the court cannot acquire
jurisdiction if the defendant fails to object its jurisdiction or because the defending party
waives or consent the jurisdiction.

When is a civil action commenced? By filing the complaint in the proper court. This is another
important element on how jurisdiction over the subject matter is acquired. It is important in
determining the nature of the action

How will know what is the subject matter or the nature of the action filed before the court?

o The nature of the action in relation to the jurisdiction is determined of course on what
is alleged in the complaint. It does not depend upon the pleas or defenses of the
defendant in his answer or motion to dismiss

o If for example the defendant borrowed money from the plaintiff and the defendant did
not pay, these allegation will determine the nature of the action which is capable of
pecuniary estimation. And whether the court will have jurisdiction or not will depend on
the amount involved.

o Again, the nature of the action is determined by the law at the time of the
commencement of the action and the allegations made in the complaint.

5
Midterm CivPro Transcript 2016
EH 403
Exception to the rule that jurisdiction over the subject matter is determined by the allegations
of the complaint

o The general rule is not applied with rigidity in ejectment cases in which the defendant
averred the defense of the existence of tenancy relationship between the parties.

o the court went beyond the allegations of the complaint in determining jurisdiction over
the subject matter and required the presentation of evidence to prove or disprove the
defense of tenancy. After finding the real issue to be tenancy, the cases were
dismissed for lack of jurisdiction as it should properly be filed with the Court of
Agrarian Reform.

o Note class,that just because the defendant alleges tenancy, the regular courts do not
automatically dismiss on the basis of lack of jurisdiction. The court must determine
whether or not there is indeed tenancy.

summary of the rules of jurisdiction in relation to the subject matter.

1. The power to hear and determine cases of the general class to which the proceeding in question
belongs.
2. Determined by the LAW IN FORCE at the time of its institution. Once the court acquires jurisdiction,
it may not be ousted by any subsequent law placing jurisdiction in another tribunal, except (a) when
the law itself so provides or (b) the statute is clearly intended to apply to actions pending before its
enactment.
3. Matter of legislative enactment which none but the legislature can change.
4. Once jurisdiction is acquired, court RETAINS it until the final determination of the case
5. Never acquired by consent or acquiescence of the parties or by laches, nor by unilateral assumption
thereof by a tribunal.
6. Determined by the ALLEGATIONS in the complaint and the CHARACTER of the relief sought.
- it can happen that what is stated in the complaint is specific performance but what is prayed
for is money judgement which is capable of the pecuniary estimation. How do we classify this?
Examine the allegations and relief prayed for, if the money judgement it merely an incident to
a judgement not capable of pecuniary estimation then the nature of the action is one that is
not capable of pecuniary estimation. But if it principally for collection of sum of money, then it
is capable of pecuniary estimation.

o Ex. I have made an allegation that a Contract of sale was entered into, payment was
made but the defendant failed. So the relief prayed for will be for the court to order
defendant to deliver the thing sold. This action is coupled with damages, now we will
determine whether the collection of sum of is primarily the relief prayed for or an
incident.

7. Does not depend on pleas or defenses of defendant in an answer or motion to dismiss.


Related concepts: (note: what is transcribed below arent the complete concepts, nag skip2 si
justice diri)

1 Jurisdiction versus the exercise of jurisdiction

- Once the court acquires jurisdiction, whatever is does to the case, like issuance of summons,
pre-trial conference, trial and judgment etc, these are exercises of such jurisdiction.

- Jurisdiction is the authority to hear and decide cases based on the allegations made in the
complaint. The act done by the court pursuant to that authority is an exercise of jurisdiction.

- It is important to distinguish this because of the remedy available if there is an error


committed by the court.

Error of judgment Error of jurisdiction

6
Midterm CivPro Transcript 2016
EH 403
When a court acquires jurisdiction over the when a court takes cognizance of a case over
subject matter, the decision or order on all other the subject matter of which it has no jurisdiction,
questions arising in the case is but an exercise or acts in excess of jurisdiction or with grave
of jurisdiction; Errors which the court may abuse of discretion amounting to lack of
commit in the exercise of such jurisdiction, like jurisdiction,
errors of procedure or mistakes in the court's
findings Remedy: extraordinary writ of Certioari

Remedy: ordinary appeal


o Ex. when a court in a criminal case compels and accuse to testify without presence of
counsel, this is grave abuse of discretion and the consequence of such is it as if the
court has no jurisdiction- ERROR OF JURISIDCTION

o Ex. The court does not conduct pre-trial conference despite request of the party- error
of jurisdiction.

2 Lack of jurisdiction and excess of jurisdiction

Lack of jurisdiction Excess of jurisdiction


- No authority in the first place - Presupposes the court has the authority
- The respondent court or tribunal acts but such authority is exercised in
without jurisdiction if it does not have capricious, whimsical manner.
the legal power to determine the case - where the court, being clothed with the
power to determine the case, oversteps
its authority as determined by law, it is
performing a function in excess of its
jurisdiction
-

3 Doctrine of primary (administrative) jurisdiction

- The doctrine of primary jurisdiction precludes the courts from resolving a controversy over
which jurisdiction has initially been lodged with an administrative body of special competence.

o Ex : Damages is claimed arising from the collision between the claimant's vessel and
that of another. Such claim can of course be determined by the courts. But in order to
enforce such claim before the courts, there must be a determination of which vessel is
at fault. This issue is placed within the special competence of the Maritime Industry
Authority or Philippine Coast Guard which administrative body regulates sea travel.
Under this situation courts should defer to the jurisdiction of such administrative body
for it has the competence to determine which vessel is at fault. Its finding then can
serve as basis or premise for the legal consequences to be then defined by the court.

- Objective of this doctrine is to avoid conflicting findings. And the consequence of such conflict
is there will be no uniformity and consistency in the application of laws.

- Exceptions to the doctrine of primary jurisdiction :

1 where there is estoppel on the part of the party invoking the doctrine;

2 where the challenged administrative act is patently illegal, amounting to lack of jurisdiction;

3 where there is unreasonable delay or official inaction that will irretrievably prejudice the
complainant;

4 where the amount involved is relatively small;

7
Midterm CivPro Transcript 2016
EH 403
5 where the question involved is purely legal and will ultimately have to be decided by the courts
of justice;

6 where judicial intervention is urgent;

7 when its application may cause great and irreparable damage;

8 where the controverted acts violate due process;

9 when the issue of non-exhaustion of administrative remedies has been rendered moot;

10 where there is no other plain, speedy and adequate remedy;

11 when strong public interest is involved; and

12 in quo warranto proceedings.

4 Doctrine of continuity or adherence of jurisdiction

- Once jurisdiction attaches it cannot be ousted by the happening of subsequent events


although of such a character which should have prevented jurisdiction from attaching in the
first instance

- Ex. In criminal action, the laws says when the penalty does exceeds 6 yrs, you file it in regular
courts. Let us assume that there is a law passed amending the jurisdiction of courts now
expanding the jurisdiction of 1st level courts which now includes the penalty imposable of 7
yrs. What will happen to the cases pending before the RTC because prior to the new law, it was
the RTC which has jurisdiction on penalties exceeding 6 years? Under this doctrine, it remains
with RTC until the RTC terminates the case. Laws vesting jurisdiction cannot be given
retroactive application.

- Exceptions to the Rule of Adherence/Continuity of Jurisdiction:

1 When there is an express provision in the statute on retroactive application; or

2 The statute is clearly intended to apply to actions pending before its enactment; or

- The statute is curative. This means that even if originally there was no jurisdiction,
the lack of jurisdiction may be cured by the issuance of the amendatory decree,
which is in the nature of a curative statute with retrospective application to a
pending proceeding and cures that lack of jurisdiction. Thus, in a case, while the CFI
has no jurisdiction over a complaint for damages arising from the dismissal of a radio station
manager which was filed on August 2, 1976, PD 1367 vesting the court with jurisdiction over
such type of cases cured the lack of jurisdiction of the trial court at the time the instant claim
was filed before it

5 Objections to jurisdiction over the subject matter

- It can be raised anytime even in the first time on appeal. Or it can even be raised for the first
time.

- When can you raised it in first instance? If you file a motion to dismiss, but if you did not file a
motion to dismiss, then you can raise such objection in your answer, if you did not raise it in
your answer, you can still question it because the rule says that Objections to jurisdiction over
the subject matter can be raised for the first time.

- Exception when there is ESTOPPEL by laches

8
Midterm CivPro Transcript 2016
EH 403
o There is estoppel when you participated in the proceeding and did not question the
jurisdiction, until there is judgment.

o Laches- delay in asserting you right

o In tijam case:

The case involves collection of sum of money which is filed in CFI. Although
triable in 1st level court pero gi file sa CFI, wala jud mu object ang defendant

The plaintiff asked for preliminary attachment, and the court granted it but
was not implemented because the defendant has a remedy to counter act the
implementation of preliminary attachment and that is the filing of a counter-
bond. This counter- bond will act as a substitute to the property as a security.

So the preliminary attachment was dissolved.

The counter-bond was in the form of security, so there is a third party


guarantying if later on the judgment favors the plaintiff.

Later on, the court rendered a judgment in favor of the plaintiff which became
final and executory.

There was no objection made by the surety company.

Since the judgment became final and executory, it has to be executed. So the
court issued a writ of execution.

So the sheriff went to the defendant to look for properties but failed.

So the plaintiff moved to execute the judgment against the surety company
which the latter opposed. The court dismissed the motion of the plaintiff
because the company was not served with the writ of execution.

So the plaintiff filed 2nd motion of execution still against the counter-bond. The
surety company did not opposed. So the motion was granted. Then the surety
company asking the court to quash the writ of execution against the counter
bond. But denied.

CA affirmed the execution against the counter-bond. The company filed a


motion for extension of time to file MR. which the CA granted. But no MR was
filed by the company instead it filed a motion to dismiss on the ground that
the RTC has no jurisdiction over the subject matter.

SC: the surety company filed motions in RTC which in effect asked reliefs from
the RTC. It acknowledges the authority of RTC. THIS IS AN ESTOPPEL BY
LACHES on the part of the surety company. The Surety company
misrepresented to the plaintiff that the RTC has jurisdiction over the subject
matter and it would be unfair to now say that it had no jurisdiction.

o Tijam v. Sibonghanoy, 131 Phil. 556 (1968), the Court ruled that the existence of
laches will prevent a party from raising the courts lack of jurisdiction. Laches is
defined as the failure or neglect, for an unreasonable and unexplained length of time,
to do that which, by exercising due diligence, could or should have been done earlier;
it is negligence or omission to assert a right within a reasonable time, warranting the
presumption that the party entitled to assert it either has abandoned or decline to
assert it.

9
Midterm CivPro Transcript 2016
EH 403
o The fact pattern common among those cases wherein the Court invoked estoppel to
prevent a party from questioning jurisdiction is a partys active participation in all
stages of a case, including invoking the authority of the court in seeking affirmative
relief and questioning the courts jurisdiction only after receiving a ruling or decision
adverse to his case for the purpose of annulling everything done in the trial in which
he has actively participated. As clearly pointed out in Lao vs. Republic 479 SCRA 439:
A party who has invoked the jurisdiction of the court over a particular matter to
secure affirmative relief cannot be permitted to afterwards deny the same jurisdiction
to escape liability.

November 14
Nov. 14 (part 1 and 2 recordings)

C. Jurisdiction over the ISSUES

With what is alleged by one party is being denied by the other party.

In the criminal case, there is what we call an issue arises with what is alleged in the
information case controverted by the accused.

And how does the accused controvert it? By pleading not guilty to the information charged so
an issue will be raised there.

In the civil case, that is what is called the issue, the point of fact or point of law that is being
controverted by the other party. If it is a collection case for example, the claiming party says
the defending party did not pay despite demand, the moment the defending party says I did
not borrow money or Yes, I borrowed money but I already paid then an issue is raised being
denied or controverted by the accused.

So you have the parties of the case, issues raised in the case and the nature of the case. When you
refer to the nature of the case, it is the general classification of civil cases to which that particular case
filed before the court belongs.

In criminal cases, we have general classifications and usually it is determined by the penalty
imposed. We have those crimes that does not exceed 6 years thats one general classification,
an example is the slight physical injuries case. Another is where the penalty exceed 6 years,
examples are murder or homicide. That is what we call the nature of the action.

In the civil cases, we also have general classifications, and we call them subject matter or
nature of the action. We have cases which are real actions which involve title to or ownership
of real property or possession of real property. Action other than those are personal actions.
And actions which are capable of pecuniary estimation like the collection of sum of money case
because the amount is specified. While there are also cases which are not capable of pecuniary
estimation like the specific performance and foreclosure of mortgage. The demand is not a
fixed amount of money.

D. Jurisdiction over the RES or PROPERTY IN LITIGATION

And then when you have a case, it will involve things or property that is the subject thereof. For
example, what you file is collection case the thing involve is money. If the action is to annul marriage,
what is involve is the marriage contract. If foreclosure of mortgage, the thing is mortgage contract or
the property involved. This is what we call the res refers to the thing that is the subject matter of the
litigation.

10
Midterm CivPro Transcript 2016
EH 403
That is why we discussed the difference of the subject matter of the litigation and subject matter in
relation to jurisdiction. Because the latter refers to the nature of the action or the general classification
to which the particular case belong while the former refers to the specific thing or property of the case
that can be a status as the subject of the litigation.

II. CLASSIFICATION OR TYPES OF JURISDICTION

When we relate the 4 elements of jurisdiction that to jurisdiction the power or authority of the court to
hear, try and decide a case that jurisdiction there should include power over the nature of the action,
power over the issues involved in the case, power of authority to bind the parties involved in the case,
and authority to bind the thing that is the subject matter of the case. These are what we called the
elements of jurisdiction in a civil action.

What is the effect if one of the elements is not fulfilled or when the court lacks an element?

Whatever it does to the case will be irregular, will be null and void. In other words, if the court
tries a case even if it has no jurisdiction over the general classification to which the case
belongs, jurisdiction over the subject matter, whatever it does will be null and void because it
has no authority.

Second, if the court decides issues which are not raised before it such decision of the court
over those issues will not be binding because it has no authority to resolve those issues.
Because they are not included.

If the court does not have jurisdiction over the defending party then whatever it resolves in
that case will not be binding upon that party because it has no jurisdiction over that man.

If the court does not have jurisdiction over the thing in that case, it cannot bind the thing. In
other words, you would have a useless procedure so in order to have a valid proceeding, a
court must be able to acquire jurisdiction over these 4 elements.

How does the court acquire jurisdiction over the subject matter, over the nature of an action, over the
general classification of the case to which the specific case which is filed belongs we have said is
conferred by law.

It is based on the law. So when we say jurisdiction is conferred by the law, we are referring to
the substantive law.

Law at what time in relation to the case?

At the time of the commencement of the action, not at the time when the right is violated.
Because a civil action is an action in order to enforce a right, to remedy when a right is
violated. And we even said Congress plays an important role when it comes to jurisdiction
because it defines and vests rights. Secondly, it is Congress that defines authority over the
subject matter. There can be no action unless a right is violated. And when there is an action
filed Congress through a law that confers the authority to acquire, hear, try that action. It is
conferred by law at the time of the commencement of the action.

RELATED CONCEPTS:

Raising Objections to Jurisdiction over the Subject Matter

11
Midterm CivPro Transcript 2016
EH 403
Lack of jurisdiction over the subject matter can be objected to even if for the first time on appeal.
Why? Because authority is very basic, is very fundamental. If there is no authority then the entire
proceeding will be null and void. In other words, even after judgement as long as that juegemnt has
not been final and executory.

But what is the first instance when you can object the jurisdiction of the court over the subject matter?
You can do it before filing the answer if you are the defendant. How? By filing a motion to dismiss. It is
equivalent to motion to quash in a criminal action before you controvert through your plea of not guilty
you can already question jurisdiction by filing the motion to quash.

Now, supposing you did not file a motion to quash or a motion to dismiss any civil case, will you lose
your right to question the lack of jurisdiction over the subject matter? No, you can still question it in
your answer by asserting it as an affirmative defense.

Now, what about you still failed to assert it in your answer, you can still assert it even if on the first
time on appeal. In other words, lack of jurisdiction over the subject matter is not waived, cannot be
consented to by a party because only a law can confer, the source is the law.

Effect of Estoppel on Objection to Jurisdiction

Exception is when you the defending party is guilty of estoppel by laches.

Estoppel means an act of misrepresentation by which you lead the other party to believe in
your misrepresentation. You cannot therefore use that misrepresentation as an excuse later on.
In other words, when you apply in the civil case in relation to the jurisdiction over the subject
matter and when you actively participated in a civil case by filing motions before the court
asking affirmative reliefs from the court, what are you doing? You are telling the plaintiff that
the court has jurisdiction over the subject matter. The consequence is you cannot question that
anymore if later on you receive an unfavorable judgment because you have mislead the other
party. That is the rule of equity.

Laches means a long delayed in an exercise of a right would mean an abandonment of a right.
In other words, if for a long time you participated in a case without objecting to lack of
jurisdiction you commit estoppel by laches. That is illustrated in the case of Tijam v.
Sibonghanoy with respect to the surety bond that provided for the counter bond. Diba gikiha
for the collection of sum of money, nangayo og preliminary attachment ang plaintiff, gi-grant
sa court so gi-attach ang property sa defendant. Unsa may gi-file sa defendant? Counter bond
para ma-release ang properties og mao mo-stand as security for whatever judgement the
court may render in favor of the plaintiff. Usahay man gud ang collection case dugay man ang
decision s court, kung wala kay e-attach in the meantime, after a long a period of time and get
a favorable decision and gets a final and executory, wala nakay makuha. Ngano man? Kay
wala na man properties ang defendant, wala kwarta sa bank so you will be left holding an
empty bag, an empty victory. So under the rules, you are provided with provisional remedy so
dunay security kung ikaw jud makadaog ang imo buhaton kay mag attach ka sa property sa
defendant. What happens to it? They are placed under the custody of the court or custodia
legis while the case is pending. So even if the case is decided years later, wala kay kulba kay
sigurado man ka na mabayran ka kay inig daog nimo inig.final and executory naa kay property
na ibaligya sa auction aron ibayad nimo sa imo nadaog na money. Counter bond can be in the
form of cash or surety bond. In the case, the surety company participated and in fact filed
motions asking for affirmative relief. Court decided against the defendant. Since the defendant
does not have properties so the plaintiff asked for writ of execution to be satisfied against the
counter bond. The surety company opposed, the opposing means that you are telling the court
that it has authority to issue an order denying the motion for execution, as an affirmative relief
acknowledging the jurisdiction of the court over the subject matter. You did not question the

12
Midterm CivPro Transcript 2016
EH 403
jurisdiction of the court but admitted the jurisdiction. At first the court denied it because the
surety company was not notified so there was another motion filed for execution against the
counter bond. Again there were motions filed by the surety company for writ of execution and
were granted by the court. But the motion for reconsideration was denied, and later asked for
extension for appeal. But later on filed the motion to dismiss questioning for the first time the
jurisdiction of the court because it was triable unta sa MTC but gi-file sa RTC, for the time of
more than 10 years.

Estoppel because of participation and laches because you failed to assert your right to
question the jurisdiction over the long period of time.

General rule is you can question even for the first time on appeal.

An exception is the estoppel by laches. It has to be applied strictly meaning the facts attendant to the
case must be similar to the facts in the case Tijam v Sibonghanoy.

Doctrine of Continuity or Adherence of Jurisdiction

Once jurisdiction is acquired over the court of a case that jurisdiction will stick to that case until its
termination. It means jurisdiction over the subject matter is conferred by law. If at the time of the filing
of the action, jurisdiction belongs to the RTC. Example at the present when the case is capable of
pecuniary of estimation what determines the jurisdiction is the amount of demand. If the amount of
demand is not less than 300,000 pesos (also for 300,001 or 300,000.01), jurisdiction over that general
classification cases belong to the RTC. If less than 300,000 pesos then the lower court.

Exceptions to the doctrine:


1 When there is an express provision in the statute on retroactive application; or

2 The statute is clearly intended to apply to actions pending before its enactment; or

3 The statute is curative.

In Sum:

Jurisdiction over the subject matter is:

1. The power to hear and determine cases of the general class to which the proceeding in question
belongs.
2. Determined by the LAW IN FORCE at the time of its institution. Once the court acquires jurisdiction,
it may not be ousted by any subsequent law placing jurisdiction in another tribunal, except (a) when
the law itself so provides or (b) the statute is clearly intended to apply to actions pending before its
enactment.
3. Matter of legislative enactment which none but the legislature can change.
4. Once jurisdiction is acquired, court RETAINS it until the final determination of the case
5. Never acquired by consent or acquiescence of the parties or by laches, nor by unilateral assumption
thereof by a tribunal.
6. Determined by the ALLEGATIONS in the complaint and the CHARACTER of the relief sought.
7. Does not depend on pleas or defenses of defendant in an answer or motion to dismiss.

Doctrine of Ancillary/Subordinate Jurisdiction

It is when the court has authority to hear, try and decide a case, in other words, when it has
jurisdiction over the subject matter the nature of the action then it has also authority over all questions

13
Midterm CivPro Transcript 2016
EH 403
related to all issues brought before it, to all matters brought before to the court. Like incidental to the
matters brought before it.

Under its ancillary jurisdiction, a court may:


(1) determine all questions relative to the matters brought before it;
(2) regulate the manner in which a trial shall be conducted;
(3) determine the hours at which the witnesses and lawyers may be heard,
(4) direct the disposition of money deposited in court in the course of the proceedings,
(5) appoint a receiver and grant an injunction, attachment or garnishment.

E. Jurisdiction over the PERSON (PARTIES)

The court has authority to render judgment that would bind the parties.

How does the court acquire jurisdiction over the person in civil actions? There are two parties:

a Plaintiff

The court acquires jurisdiction when the plaintiff files a case in court or claim. It tells the court, the
court has authority over you because you are voluntary submitting yourself to the jurisdiction of
the court.

b Defendant

There are two ways similar in the criminal action that court acquires jurisdiction over the person:
the compulsory process: arrest; and the voluntary submission when the accused asks for an
affirmative relief like the filing of motion to quash on the ground of lack of jurisdiction over the
subject matter.

In the same manner in the civil action, jurisdiction can be acquired by the court like the
compulsory process: service of summons; and voluntary submission by the defendant before the
court like when the defendant asks for an affirmative relief other than questioning the jurisdiction
of the court over his person. If the defendant files a motion to dismiss on the ground that the court
has no jurisdiction over him then we cannot say the defendant is voluntarily submitting himself to
the jurisdiction of the court since he is in fact questioning the court. But if he files the motion to
dismiss on the ground that this is not the proper venue, prescription or lack of jurisdiction over the
subject matter. It means I am submitting myself to the authority.

In a case where the defendant files a motion to dismiss not solely on the ground of lack of
jurisdiction over his person but mixed with other grounds. What is the effect? Under the old ruling,
the defendant is submitting himself because he is waiving his right to question the lack of
jurisdiction of the court. But the present ruling, even if is mixed by other grounds as long as he
questions the jurisdiction of the court over his person he is not considered as having voluntarily
submitted himself to the jurisdiction of the court.

This jurisdiction over the person of a defendant is a requirement in civil cases that is classified as
in personam. There are several ways in classifying civil cases:

a Whether it is capable of pecuniary estimation like collection of sum of money, or if not


capable like foreclosure of mortgage or specific performance,

b Whether there is relationship or privity with a real property (immovable). If there is, like
filing an action to recover possession over a real property, to recover ownership over a real

14
Midterm CivPro Transcript 2016
EH 403
property, or any interest over a real property. If there is none, it is called personal actions.
This classification determines the place where you are supposed to file your civil case. If
real action then file the case where the real property is situated, it determines venue. If it
is a personal action, it determines the place of residence of the parties at the option of
plaintiff.

c With respect of the object of the action, the purpose why you filed an action. This is in
order to bind the person of the defending party is called in personam. In order to bind the
thing involved against the whole world like an action for legitimation to establish a status.
If the intention is to bind the subject of the litigation against anybody who might be
interested it is called in rem. The middle ground is the quasi-in rem with the intention to
bind a thing but impleaded against a particular defendant. This classification will tell us
whether jurisdiction over the person of the defendant is required. The rule is if the
classification is in personam, the jurisdiction of the person of the defendant is required. If
in rem, it is not. Although summons may still be issued by the court but the service of
summons here in in rem is not in order for the court to require the jurisdiction over person
of the defendant, as it is served only for due process.

Note: you can combine classifications, a real action can also be in personam for example, the intention
is to recover the real property against a particular a defendant who is also claiming ownership and
binds only a specific party the defending party. The classification depends on the issue raised then you
determine what kind of action it is. For example, collection of sum of money, it is capable of pecuniary
estimation, in personam, and the purpose of the court to bind the person of the defendant by service
of summons or the voluntary submission of the defendant.

Reminder: voluntary appearance is an affirmative relief; but if the relief prayed for is to question the
jurisdiction of the court over the person of the defendant, there is no voluntary submission to the
jurisdiction which is called special appearance. Special because the purpose is precisely to question
the jurisdiction of the court over this person.

How do you object the jurisdiction of the court over the person? File a motion to dismiss at first
instance. If you did not file that motion then raise it as an affirmative relief. It is the same as the lack
of jurisdiction over the subject matter. Is there a difference when to object? Yes, if the ground is lack of
jurisdiction over the subject matter even if you filed a motion to dismiss governed by the omnibus
motion rule (state all available grounds except for the 4 grounds: lack of jurisdiction over the subject
matter, prescription, res judicata and lis pendens) you can raise it first time in the answer as an
affirmative defense, if still not raised it is not waived, you can raise it even first time on appeal
because it is conferred by law. But if the ground other than the 4 grounds then in personam case, filed
a motion to dismiss without citing the ground of lack of jurisdiction of the person of the defendant,
then cannot raise anymore in the answer because it is deemed waived.

F. Jurisdiction over the ISSUES

Any point of fact or law that is controverted is an issue. If it is a point of fact, it is an issue of fact. If it is
a point of law, it is an issue of law. Jurisdiction of the issue is the authority or power of the court to
resolve the points of fact raised by the parties in the case. So if the court will resolve the issue that has
not been raised by the parties that resolution is an invalid for lack of jurisdiction. The issue is raised by
the parties when the plaintiff files his claim by filing a complaint, the defendant files an answer
controverting the claims made by the plaintiff. In other words, issues are raised through what we call
pleadings. Pleadings are written allegation of the party of their respective claims and defenses
submitted to the court for trial judgment.

15
Midterm CivPro Transcript 2016
EH 403
If you are a defending a party there are two ways to defend against the allegation of the plaintiff: the
negative and positive way. The negative defense is by denying the allegation in each paragraph. The
affirmative defense is done by admitting the allegations of the defendant but citing a defense. Lack of
jurisdiction over the defendant, or lack of jurisdiction of the subject matter can be raised as a ground
of motion to dismiss in the answer as an affirmative defense.

Assuming all the allegations of the complaint are true the court however does not have the jurisdiction
over the nature of the answer, the action should be dismissed because the court did not acquire the
jurisdiction over the person, affirmative defense. If the jurisdiction over the subject matter is the
ground, it cannot be waived even if you file motion to dismiss and did not allege in that motion. But if
the ground is lack of jurisdiction over the person, you filed a motion to dismiss and did not allege in
that motion, you cannot cannot allege it as an affirmative defense in your answer. But maybe allege as
an affirmative defense in your answer only if you did not file a motion to dismiss because it can be
covered under the Omnibus motion rule.

The other difference is the jurisdiction over the subject matter is conferred by law, but jurisdiction over
the person of the defendant can be consented to, waived, agreed upon by voluntary submission of the
defendant.

How does the court acquire jurisdiction over the issues? Well, it can be consented to by the parties
through their pleadings. If not conferred in the pleadings, then it is also allowed when the parties
themselves stipulated in the pre-trial conference. Stipulation of the issues (when both parties agreed)
can be done by waiver; if there is no allegation in the complaint or answer as defenses, the rule is you
cannot prove them. But if it is proven in the trial, and you did not object the jurisdiction over the issues
then by waiver you allow the court to acquire the jurisdiction.

The importance of the pre-trial order which limits the issues in the case is that it guides the court and
the parties on what issues to be proven. If the issue is not there then object the jurisdiction of the court
over the issues.

Basic rule in litigation: master the facts of the case! (ayaw kuno take sa exam na sugat-sugat lang og
maghope na sakto imo tubag)

In sum:
1. Authority to try and decide the issues raised by the pleadings of the parties.
2. Conferred by the PLEADINGS or EXPRESS CONSENT of the parties.
3. An issue not duly pleaded may be tried and decided if no timely objection is made by the parties.
4. In certain cases, as in probate proceedings, jurisdiction over the issues is conferred by law.

G. Jurisdiction over the RES OR PROPERTY IN LITIGATION

When we talk about Thing it is the subject matter of the litigation in which can include status and
includes the defendant in the case. It can be a real thing or tangible.

Jurisdiction over the RES means the jurisdiction is the power and authority to try and decide the case if
it involves a thing then to bind the thing, required in in rem or quasi-in rem actions. However, the
jurisdiction over the person therefore is not a requirement because what is important is for the court to
bind the thing that is the subject of the litigation. The defendant actually is the thing. For example, in
probate proceeding if there is a will then determine the validity of the will before you determine the
distribution is in accordance with the law, this case is called in rem where the intention is to bind the
estate.

November 15
- No transcript, yet

16
Midterm CivPro Transcript 2016
EH 403
- Hopefully ma apas ra.

November 21

JURISDICTION OF THE REGIONAL TRIAL COURTS


There are 13 judicial regions in the Philippines. Each region has a regional trial court. We belong to the
7th judicial region; there is a regional trial court. There could be branches for each regional trial court.
The creation of RTCs is pursuant to a substantive law which BP 129, Section 13 Par.1.
In civil cases, territory is important to indicate venue. Venue means the place of trial, merely
procedural. BP129 vests upon the SC the authority to create the different territories because SC has
the power to promulgate rules of procedure. This is part of the procedural aspect because it simply
refers to venue and not jurisdiction.
The territory covered by the RTC in Cebu City- it belongs to the 7 th Judicial Region. The territories
covered by this region would comprise the provinces of Cebu, Bohol, Siquijor and Negros Oriental. This
defines the territorial area for purposes of determining the first level courts which belong to the
jurisdiction of the RTC for purposes of appeals.
Basic guidelines in defining territory: With a view of making the courts readily accessible to the
people of the different parts of the region and making the attendance of litigants and witness as
inexpensive as possible ~BP 129, Section 18

SPECIFIC CASES BELONGING TO JURISDICTION OF RTC


Classification of Jurisdiction
Nature of the Cause: Original or Appellate

Extent: Exclusive or Concurrent

You can combine (basis is different): Original and Concurrent, Exclusive Original Jurisdiction. Remember
to follow hierarchy of courts and once it is filed in one court cannot file it another otherwise there is
forum-shopping.
What are the factors that determine the Original Exclusive jurisdiction of RTC? -Nature of the action,
Value of the property subject of litigation and the value of demand

First Category: Subject of action is incapable of pecuniary estimation ( Paragraph 1)


If for example you entered into a contract of sale, you paid the seller but there was no delivery of the
thing remedy would be (1) compel the seller to deliver or (2) ask the return of the sum of money. If we
go with the second remedy, the action would be capable of pecuniary estimation as you can assign a
value of money.
But if you would want the buyer to fulfill his obligation, you file an action for specific performance. The
main issue in this case would be w/n you have the right to compel seller to deliver or w/n seller has the
obligation to deliver based on the contract entered into- this action is not capable of pecuniary
estimation. This would fall under jurisdiction of RTC.
If you would want to file for specific performance and at the same time ask for damages because you
suffered sleepless night etc. - you demand a specific amount and also ask for exemplary damages ( to
set an example to others) -
QUESTION: Does the RTC have jurisdiction? What is the basis for your answer? Remember to determine
first the primary objective of your action- if your primary objective is to compel seller to comply with
the obligation- damages will just be incidental to that claim of yours. Your action should be classified as
one not capable of pecuniary estimation.
But if your primary objective based on your allegations, is that you want to compel the return of the
sum of money you paid- it is capable of pecuniary estimation- in which case this does not belong to the
jurisdiction of the RTC
The above example can fall under Paragraph 6: All other cases where demand exclusive of interests,
damages of whatever kind, attorneys fees, litigations expenses and cost or value of property in
controversy- exceeds P300,000.00 (P400,000.00 in Manila) this is actually the opposite of Paragraph
1.

17
Midterm CivPro Transcript 2016
EH 403
If it is a collection for a sum of money, what determines the jurisdiction is the principal amount
demanded- because it says exclusive of interests, damages or whatever kind etc. This applies to cases
involving personal property. Take not of the threshold amount- If it does not exceed P300, 000.00,
jurisdiction is with the 1st level court. If it exceeds, jurisdiction belongs to RTC.
How to determine the subject matter of the action? By examining the allegation in the complaint and
the relief prayed for
Case of Genesis Investment Inc v Heirs of Ebarasabal: Action filed was Declaration of Nullity of
Documents, Recovery of Shares, Partition, Damages and Attorneys Fees- this is actually a joinder of
different causes of action, if you observe we have an action for a sum of money (Recovery), and also
Declaration of Nullity which is not capable of pecuniary estimation. How do you determine? Go back
and examine the fundamental issue raised by the plaintiff in filing this case. Here the SC said, the
fundamental issue based on the allegations of the plaintiff is the declaration of nullity one that is
incapable of pecuniary estimation so jurisdiction belongs to the RTC.
Case of Ortigas v Herrera: Main issue is specific performance to compel the performance of the
obligations of the party, money demanded is just incidental. So the main action is not capable of
pecuniary estimation- Jurisdiction is with RTC
Remember: The title of the action is not determinative of jurisdiction factual allegations in the
complaint prevails over the designation of the complaint
Action for support: is not capable of pecuniary estimation- But why when you actually ask for a sum
of money when you file for support? When one files an action for support, the fundamental issue raised
is whether or not you have the right to be supported- the amount is just incidental.
In expropriation- there is a need for payment of just compensation but the main issue is w/n the
expropriator has the right to expropriate. So this action is incapable fo pecuniary estimation. Other
examples of actions not capable of pecuniary estimation: foreclosure of mortgage, annulment of
judgment, annulling a deed of sale or conveyance and to recover the price paid and for rescission.
(Russel v Vestil 304 SCRA 739)
Case of Co v UCPB: the following are considered real actions: (1) judicial foreclosure of real estate
mortgage, (2) actions to annul real estate mortgage. Main issue is the right to foreclose a real
property- of it is a real action it belongs to another classification falling under the jurisdiction of the
RTC- this action is no longer classified as an action incapable of pecuniary estimation but a real action.
An action to annul a Deed of Declaration of Heirs and for partition of land- if you file an action for
partition, you are actually claiming your interest over that property. So if it is a real property, it is a real
action- what determines jurisdiction is the value of the real property. What is the purpose when you ask
to annul a deed of declaration of Heirs? You want the court to annul the declaration of another as an
heir. But in this case there is also the action for partition. Go back to primary objective: the partition
was merely incidental to the action for annulment (Russel v Vestil)
There are instances when the reliefs prayed for are in the alternative. For example, plaintiff prays that
the respondent deliver the property sold OR to return the money paid. If it is either or, both reliefs are
principal reliefs. Classify that according to SC, capable of pecuniary estimation- then what determines
is the principal amount.
An action for replevin of a motorcycle is capable of pecuniary estimation- the basis of jurisdiction is the
value of the personal property sought to be recovered- if it exceeds P300,000.00 (P400,000.00 in
Manila) then the jurisdiction is with the RTC.
An action for interpleader- action filed by one who has no interest over the subject matter, but there
are 2 (or more) different claimants-this action is filed for the court to determine who has the right over
the thing subject of claim. Example tenant in a particular apartment, leased from X, you pay rent to X
who died, and there are 2 wives (A and B). You are willing to pay the rental but you do not know to
whom the payment should go. You file action for interpleader. Such action is incapable of pecuniary
estimation.
Second Category: Real Action (Paragraph 2)
Real Action- has privity with a real property; one affecting title to or possession of real property, or
interest therein
What determines is the assessed value of the property- dictated by government (NOT MARKET
value)

18
Midterm CivPro Transcript 2016
EH 403

Outside of Metro Manila- exceeds P 20,000 (not exceeding P 20,000.00 jurisdiction with First
Level Court)

In Metro Manila- exceeds P50, 000.00 (Not exceeding P 50,000.00 First Level)

Recover ownership- assessed value is P 20K or P50K- file in MTC

Recover a Motorcycle - depends upon value of property (Paragraph 6) amount P300,000


(P400,000.00)

Accion publiciana- action to recover possession of real property) (here you determine the
assessed value)

Reinvidicatoria- action to recover ownership of real property) (here you determine the assessed
value)

Interdictal- exception (ejectment or unlawful detainer) jurisdiction is always with first level courts
(regardless of assessed value)

Maritime Jurisdiction where demand or claim exceeds P100,000.00 (now 300K) or in Metro
Manila where demand or claim exceeds 200K (now 400K) Paragraph 3
Example: Collision between two vessels, determination of jurisdiction depends on the claim, if the lost
cargo exceeds 300K then RTC if not MTC.
Matters of Probate Paragraph 4
This has something to do with the death of a person who has properties. When a person dies, the
distribution of the estate depends upon w/n the deceased had executed a will or not. The distribution
will be based upon the will that is what we call testate succession. If there is no will, based on the law
itself that is what we call intestate succession. If there is a will, before distribution of estate, there must
be a determination whether the will is valid or not. This is done through the process of probate. The
jurisdiction of the court is determined based on the gross value of the estate. If the value exceeds
300K and a probate matter in Metro Manila where such gross value is exceeds 400k- jurisdiction is with
RTC.
How do they determine gross value? Listing of the estate- then there will be claims which should be
paid off- but the jurisdiction of the court is determined by the gross value of the estate before payment
of liability.
Catch-all phrase: in all cases, not within, the exclusive jurisdiction of any court, tribunal
person or body exercising judicial or quasi-judicial function Paragraph 5
Samples from the notes:
Sandoval v Caneba- conflict between subdivision owner and land buyer- who has jurisdiction HLURB
or RTC? Where the case involves non-payment of installments over subdivision lot: RTC have no
jurisdiction.

Other cases mentioned (pls. refer to your notes): CT Torres Enterprises v Hibionada, Benguet
Corp v Leviste
Machete v CA: Collection by landowner of unpaid back rentals- SC said it is an agrarian dispute which
is exclusively cognizable by the DARAB. Two exceptions: (1) Just compensation under the land reform
program (the determination would fall under the jurisdiction of regular court) and (2) Prosecution of
Criminal Case (also with regular courts)
Lupangco et al v CA: Involves the Professional Regulatory Commission- authority is to administer
examinations- resolution coming from the PRC barring students from taking review classes because of
leakages- the reviewers filed an injunction suit before the RTC against the PRC-

19
Midterm CivPro Transcript 2016
EH 403
QUESTION: which court has jurisdiction? Under the law, when the subject matter is an action of
a quasi-judicial body- original jurisdiction is with the CA. But SC said the action done by the PRC
is an administrative action and not a quasi-judicial function. The resolution did not resolve a
controversy.

Bernardo v Caltex: Dispute between an operator and a dealer: Jurisdiction is with the Energy
Regulatory Board. Exception to the rule: if it arises out of the relationship of debtor and creditor- the
jurisdiction is with the regular courts
Customs: When the issues involve validity or regularity of seizure or forfeiture, RTC hands-off as
jurisdiction belongs to the Bureau of Customs.
CTA: Hulata si Atty. Amago

In all cases in which the demand, exclusive of interest, damages of whatever kind,
attorneys fees, litigation expenses and costs or the value of the property in controversy
exceeds 300k or 400k in Metro Manila Paragraph 6

Refers to cases capable of pecuniary estimation and what determines is the principal demand as the
law says exclusive of interest, damages of whatever kind, attorneys fees, litigation expenses and costs
or the value of the property in controversy.
Determinative of jurisdiction: Principal amount of demand interest damages are irrelevant
But jurisdiction of a court over a case there should be: Jurisdiction and payment of filing fee. And the
basis of payment of filing fee would include all amounts claimed.
So determination of jurisdiction of court, consider only the principal amount. But for purposes of
compliance with the required payment of filing fee, total everything (principal amount + interest,
damages etc).
If you demand damages (purely damages only) the amount corresponding to the damages
determines the jurisdiction
Sample: Taxi you ride meets an accident you sustain injuries you file an action for damages (actual,
moral, and exemplary)
Damages will only be excluded if it only incidental to the principal amount demanded.

Intracorporate Controversy: Paragraph 7


Wait for Corporate Law Just Read them daw

Concurrent Original Jurisdiction of the RTC


With SC: Actions affecting ambassadors and other public ministers and consuls

With SC and CA: Petitions for Habeas Corpus and Quo Warranto

With SC, CA, and Sandiganbayan: certiorari. Prohibition and mandamus to an act or omission of
MTC, corporation, board, officer, or person

With MTC, MeTC, MCTC: Application for Protection Order

Appellate Jurisdiction of RTC: RTC exercises appellate jurisdiction over First Level Courts in their
respective territorial jurisdictions (where that first level court is located)
First Appeal: Ordinary Appeal by filing a Notice of Appeal

Where: First Level Court appeal is a matter of right (automatic) as long as appeal is perfected on time

From RTC:

Where: Appeal to CA

20
Midterm CivPro Transcript 2016
EH 403
How: Mode of Appeal-petition for review (appeal to the Court of Appeals in cases decided by the
Regional Trial Court in the exercise of its appellate Jurisdiction) - not mandatory CA will have the
discretion wn to allow appeal

November 22

November 22, 2016


Civil Procedure Transcript
The difference between an ordinary notice of appeal from the RTC to CA and a petition for
review from the RTC to CA, is that as long as the ordinary appeal is perfected on time, the RTC will give
it due course. The appeal of RTC to CA by petition for review does not follow that procedure because
the CA has the discretion whether or not to give it due course. That is the appellate jurisdiction of RTC.
Now we go to jurisdiction of family courts. Pursuant to R.A. 8369, or the Family Code Act of
1997, an act establishing the Family Court, granting them exclusive and original jurisdiction over child
and family case. In areas where there is no Family Court, the cases referred to in Section 5 of this Act
shall be adjudicated by the Regional Trial Court. Supreme Court shall designate for among the
branches of the RTCs at least one Family Court in each of the following cities one of them is in Cebu
(through special authorization).
According to the law, pending the establishment of the Family Courts, in the meantime its the
RTC which has the jurisdiction. RTC duly authorized by courts to handle family and child cases. Not all
RTC can hear and decide these cases, only those authorized by the Supreme Court.
How are the decisions in the Family Courts appealed? It follows the same manner of procedure
in appealing from the RTC and the Court of Appeals. Unless of course if you file for petition for review
on certiorari, you file the appeal directly to the SC.
Civil cases that are heard under family courts:
petitions for guardianship and custody of children, habeas corpus in relation to the
latter (in cases where the parent hides the child), petitions for adoption of children and
revocation of adoption, complaints for annulment of marriage, declaration of nullity of
marriage, and those relating to marital status and property relations of husband and wife
or those living together under different status and agreements and petitions for
dissolution of conjugal partnership of gains. There are petitions for support and
acknowledgment, petitions for the status of children as abandoned, constitution of family
home, Cases of domestic violence, etc.

Payment of Docket Fees: Equally Important


What determines jurisdiction of the court is the principal amount. Payment of docket fees is
very important in Civil Procedure because in civil cases, it is not enough that the court has the
authority to hear and decide cases, there must be payment of docket fees. In computing how much
docket fee is to be paid, it will be based not only the principal amount, but also, the interest, damages,
etc.
Payment of Docket Feeshow do we compare this in relation to criminal actions?
In our discussion on criminal actions diba, payment of docket fee is also required. But generally
there is no required payment for filing fee if what youre claiming for is actual damage. What we are
talking here is criminal cases. The situation here is the civil case is deemed instituted with the criminal
case because filing of docket fee is relevant to the civil aspect, there is no such docket fee in criminal
case, we dont require the state to pay such fees (in filing for the criminal aspect). This is only with
dependency of actions for civil aspect.
The dependent civil actions, however can be filed separately by reserving it or filing it ahead. If
that is the situation, you are not required to pay the docket fee for the criminal aspect, you pay the
fees in relation to the civil aspect which is separately filed. What are the rules with respect to the
payment of filing fee in relation to criminal act?

21
Midterm CivPro Transcript 2016
EH 403
If the claim is for actual damages, no need for paying filing fee. Pero if the claim is other than
actual, there is a need to pay filing fee. When are you supposed to pay the filing fee?
If in the information, the amount of damages is fixed, then the court can compute. How much?
So the rule is you pay the filing fee upon filing the criminal case. Now, what about in a situation where
the information does not allege the amount? It alleges the damages but not the amount or it does not
allege any damage. The rule is there will be a required payment of filing fee if the court awards, in
cases where you are praying for damages other than actual. And it will become a lien to the amount
awarded to you in the judgment rendered by the court. That is the rule. Now by way of exception, if the
crime is a violation of B.P. 22, what does the rule says? You cannot separately file it, you cannot
reserve it. It is deemed instituted in the criminal case. With respect to the amount of the check, which
is actual damage, you have to pay the value because it is already fixed by the law. If you further
claimed, other forms of damages, then you also have to pay the filing fees. Now, for the actual
damage portion which is determined by the amount of check involved, you have to pay it because it is
fix already. With respect to other forms of damages, then it depends on whether you alleged it or not. If
you allege it there, then you have to pay it in filing, if you did not allege, then it becomes a lien when
the court renders judgment, awarding it.
Now, what about if it is an independent civil action? Well, we follow the rule on treatment of
filing fee as enunciated by SC in the case of Sun Insurance Office vs. Asuncion. You have three points.
1 Why pay the docket fee?

Because it is not simply the filing of the complaint or appropriate initiatory pleading, but the
payment of the prescribed docket fee, that vests a trial court with jurisdiction over the subject
matter or nature of the action. (Sun Insurance Office Ltd. [SIOLI] v. Asuncion 170 SCRA 274, 285
[1989])
With respect to the payment of docket fee, the Sun Insurance case ruling modified the
previous ruling of the Supreme Court in the case of Manchester Development Corp. vs.
CA.

Here, there is a claim for damages. But the amount is not fixed. Question is can the
court acquire jurisdiction if there is allegation for damages, but there is no amount fixed
and therefore no docket fee is paid, SC says the court does not acquire jurisdiction, it
cannot be curablethat defect cannot be cured by an amendment of the complaint.
Thats how strict the ruling is in Manchester.
In the case of Sun Insurance, okay, you allege the amount, or the damages, you pay the amount,
but if you cannot pay it at the time of the filing, you can be given reasonable period of time in no case
should it go beyond the applicable prescriptive period for the filing of the offense.
An offense can have prescriptive periods diba? Depending on the gravity of the offense. I think the
longest is ten year, Im not so sure. Assuming you file it, on the tenth year, including the two days
before the prescriptive period, when can you pay the filing fee?
Sun Insurance: within a reasonable time but not beyond the prescriptive period. So in our example,
it has to be paid, within the two remaining days. It cannot be paid beyond because beyond that, the
case would have prescribed. And if the crime prescribes, there is no more cause of the action to
survive.
Docket and filing fees are the same.
2 Now, the second point enunciated in Sun Insurance: payment for filing fee does not only refer
to the principal cause of action, what is claimed in the complaint. If you have claims from other
pleadings, like you have counterclaims (a claim by the defending party to present another
claim against the plaintiff). There are two types of counterclaim: Compulsory and Permissive.

In the case of permissive counterclaim, you are not required to allege it in the same case. You
can file it separately. If it is a compulsory counterclaim, then you have to allege it in your
answer. If there is no relation, then it is a permissive counterclaim.

22
Midterm CivPro Transcript 2016
EH 403
For example, ni-ingon ang plaintiff, file ko ug collection of some of money kay gi-utangan man
ko sa defendant, wala kabayad ang defendant. So the defendant will file an answer. The
defendant will say, I deny, the allegations made by the plaintiff are false because as a matter
of fact, I did not borrow any money from her. Unya mo file siya ug lahi nga claim over the
plaintiff. Mo-ingon ang defendant

because of the filing of my answer, I suffered, sleepless nights, wounded feelings, etc.

So Im claiming damages as a counterclaim to the plaintiff.

What kind of counterclaim is that? It is a compulsory counterclaim because it is related


to the complaint. It is related to the claim made by the plaintiff. In Sun Insurance, the SC said,
even in compulsory counterclaim, there is no need for the defendant to pay filing fees.
Permissive - no relation whatsoever.

Kung pananglitan mo ingon ka na wala man ko nangutang! Di mana tinood. Ang tinood
ang plaintiff ang naka-utang naku. That utang, of the plaintiff towards the defendant has no
relation whatsoever to the alleged utang by the defendant from the plaintiff. That is a
permissive counterclaim. Under Sun Insurance, SC said if it is for that counterclaim, then the
defendant who is making the claim must pay filing fees.

What is a third party claim?


If there is a claim between A and B. There are instances where a third party anticipates and
files for a third party complaint against both, that third party complaint must be accompanied by
payment of filing fees. Sun Insurance case applies to a situation when a judgment in the Court in a
civil action, awards to a claim which is mention in the counterclaim, but before we go to that
What is the role of evidence in civil action?
How can there be an award if not alleged? An amount of damage is not claimed in the complaint,
how can the court award it? Well, while the rule says you cannot proved what you did not allege,
theres an exception to that. If the other party waives the application of that rule, in other words,
does not object during the trial if a party proves a claim for damages even if not alleged. The court
can validly render a decision, because there was waiver of the other party.
The other situation mentioned in paragraph 3, when damage is alleged in initiatory pleading but the
amount is not fixed (the claimed amount is not fixed)that it is subject to whatever the court decides;
subject to the discretionary powers of the court. The amount, while there is an allegation for damage,
but the amount is left to the discretion of the court. It depends really on the judgment of the Court.
Only when the court awards it, that the court imposed a filing fee.

What is the rule on payment of the lien?


It says here that payment of the fees will constitute a lien. When the judgment becomes final and
executory, the amount paid to the defendant will first go to the court, the court will deduct the filing
fee, and then whatever is true to the plaintiff, the plaintiff gets.
Different Ruling of SC in case of Sun Insurance case. Are this rulings applicable to the present?
With respect to the first, yes. The second: there is a modification. Under Administrative Matter, August
26, 2004, revising Rule 141 (Rule on Legal Fees) the SC now is requiring payment of docket fees even if
your counterclaim is a compulsory counterclaim. Now, what else? With respect to the third aspect of
the ruling, that still governs.

We will specify or at least proven in the trial because of the failure to object, the court may render an
award and the payment of the filing fee will constitute a lien on award. If there is an allegation of
damage but the amount is fixed, it is determine by the court and when the court determines that and
renders an award, the same rule applies. Payment of the docket fees, will constitute a lien on the
award.

23
Midterm CivPro Transcript 2016
EH 403
Manchester, wala na gayud kinahanglan mo-allege ka sa damage plus the fees amount. If you dont,
then the case can be dismissed. Sa Sun Insurance, dili na dismissible ang kaso.
You have there an example of the second instance, a man is hospitalized because of physical injury.
While on the hospital, of course he suffered actual damage (underwent an operation) pero dili pa siya
ma discharge, so continuing pa ang iya expenses, can you already file a case?
Of course, you can already file a case. What can be alleged? Only those which you can think on the
meantime. Katong to be spent pa, he cannot fix the amount. You allege that you suffer damages.In this
type of situation, where there is fixed amount for actual but in other types of damage, no amount is
fixed yet, the filing fee will constitute a lien on the award.
Alright in the case of Tacay vs. RTC of Tagum, it involves a third situation, sa Sun Insurance we have
those three rulings, kani it involved different situations. You can have a claim for real property and at
the same time, a claim for damages. Now, when the action is a real action, because you are claiming
for a reconveyance of ownership, or possession over a real property, the payment of docket fees is
based on the assessed value of the property. DO you also need to pay for the claim on the amount of
damages?
SC says another rule.
Where the action involves real property and a related claim for damages as well,
the legal fees shall be assessed on the basis of both (a) the (assessed) value of the
property and (b) the total amount of related damages sought. The court acquires
jurisdiction over the action if the filing of the initiatory pleading is accompanied by
the payment of the requisite fees, or, if the fees are not paid at the time of the filing
of the pleading, as of the time of full payment of the fees within such reasonable
time as the court may grant, unless, of course, prescription has set in the
meantime.
In other words, the total docket fee must be based on the assessed value of
the land and for the damages. Thus: (1.) If the docket fee for the recovery of
land is paid but none for the damages, do not dismiss the entire case! Just do
not consider the claim for the damages. Or, (2.) second option, citing SUN
INSURANCE, give him reasonable time to pay the balance.

Now, if you are the plaintiff, pero wala gyud kay ikabayad sa party, what will be your proper remedy?
File as pauper litigant. Exception from the payment of filing fees, but first you have to prove that you
are a pauper litigant. Pauper litigant does not mean that you do not earn any income at all. Cost of
litigation: the same applies.

Attorneys fees: if pobre ka, you dont hire private lawyer.

Lacson vs. Reyes:


SC said that when a counsel asks from a client payment of attorneys fees, either by filing a
motion with the same case, or a separate claim, the lawyer has to pay the filing fees. But actually
class, kanang attorneys fees adto jud na sa client, that is a form of damage. So dili jud na mabulsa sa
abogado.
FACTS: There was a case filed and then the lawyer filed a motion to direct the plaintiff
to pay him his attorneys fees a motion for payment of attorneys fees.

ISSUE: Is the lawyer required to pay a filing fee?


HELD: Yes. It may be true that the claim for attorney's fees was but an incident in the
main case, still, it is not an escape valve from the payment of docket fees because as in all
actions, whether separate or as an offshoot of a pending proceeding, the payment of
docket fees is mandatory. The docket fee should be paid before the court would validly act
on the motion.

Justice: Alright, lets have a break! (Yehey!)

24
Midterm CivPro Transcript 2016
EH 403
A case was filed in Leyte, but it was dismissed kay Leyte was not the proper venue. Rather, Cebu is the
proper venue. So, the case was filed in Cebu. Plaintiff says, Can I use filing fee that I paid in Leyte, as
my filing fee here in Cebu? The court said, thats okay! The matter went up to the SC. SC said, this is
not actually a refiling. Refiling means you file a case in one court, you refile it in the same court. Thats
filing of the case. But even in that situation, you still have to pay again the filing fee. The lesson is
ayaw pagdanghag ug file sa imo kaso. Mu-ingon baya dayon ang mga abogado, ang korte man gud!
Di kama-o! Ang huwes pa ang mahimong bulok ahaha

Jurisdiction of First Level Court


Original, Exclusive, Delegated, Special Jurisdiction

In criminal cases for example, RTC has jurisdiction when the penalty imposable is imprisonment of
more than 6 years until death penalty. So, necessarily, if it is 6 years or below, the MTC has
jurisdiction. Same with civil cases.

Exclusive, Original Jurisdiction:


Exclusive original jurisdiction over civil actions and probate proceedings, testate and
intestate, including the grant of provisional remedies in proper cases, where the value of
the personal property, estate, or amount of the demand does not exceed One hundred
thousand pesos (P100,000.00) or, in Metro Manila where such personal property, estate, or
amount of the demand does not exceed two hundred thousand pesos (P200,000.00),
exclusive of interest, damages of whatever kind, attorney's fees, litigation expenses, and
costs, the amount of which must be specifically alleged: Provided, That interest, damages
of whatever kind, attorney's fees, litigation expenses, and costs shall be included in the
determination of the filing fees: Provided further, That where there are several claims or
causes of actions between the same or different parties, embodied in the same complaint,
the amount of the demand shall be the totality of the claims in all the causes of action,
irrespective of whether the causes of action arose out of the same or different
transactions.

Delegated Jurisdiction:
Actually, this cases fall originally on the jurisdiction of RTC. But it can be delegated to the MTC,
referring to Delegated Cadastral and land registration cases. Cadastral: compulsory
registration of land; Registration: voluntary. RTC gyud na siya pero SC can delegate that
authority, subject to certain qualifications.
Qualification:
Kung walay ni contest sa pag-register. Wala lain nga claimant, then it can be delegated. Kung
contested, it depends on the value of the lots, if it does not exceed 100, 000 pesos, then that kind of
case can be filed before first level courts, in exercise of delegated authority. Where will the judgment of
the first level courts be appealable?
Not with the RTC, but with CA because jurisdiction belongs to RTC pero gi-delegate lang.

Special Jurisdiction of First Level Courts:


Over Habeas Corpus cases, and Special Petition for habeas corpus in the absence of all
Regional Trial Court judges (Batas Pambansa Blg. 129, Sec. 35).

Now we go to the totality rule, this applies also to cases in RTC (is still relevant to the regional
trial courts). When there are several claims, or causes of action between the same or different parties,
imbibed in the same complaint, one complaint containing several causes of action that are joined.
Under This rule, where there are several claims or causes of actions between the same or different
parties, embodied in the same complaint, the amount of the demand shall be the totality of the claims
in all the causes of action, irrespective of whether the causes of action arose out of the same or
different transactions (Sec. 33 as amended by RA No. 7691; PANTRANCO North Express Inc. vs.
Standard Insurance Company Inc., 453 SCRA 482).

25
Midterm CivPro Transcript 2016
EH 403
ILLUSTRATION of joinder of causes of action:
The defendant secured from me two loans covered by 2 promissory notes and all of them are due
and he has not paid me any. Let's say each note covers a principal amount of P175, 000.00.
I decided to file one complaint embodying 2 causes of action (how is it done: you file for one and
narrate the factual circumstances constituting different causes of action, and then ask the court to
render a judgment on each cause of action) against him although I have the option also to file 2
separate complaints (natural, bayad ka ug filing fees kaduha). If you will look at the value of each
claim which is P175, 000 that is triable by the MTC but if you will add the claims that will be P350,
000.00.
Q: Which court will have jurisdiction?

A: The RTC because the jurisdictional amount is the total amount.


Never mind that there are 2 separate loans because the law says irrespective of whether the
cause of action arose out of the same or different transactions.
In the example, there are two causes of action arising from two separate transactions. Illustrate a
joinder of causes of action arising from only one transaction.

Suppose the loan is payable in installments on separate dates. Each failure is a cause of action.

Now in the examples, there is only one plaintiff and one defendant.

What about when there are several plaintiffs or defendants. Here, there are three contracts
violated/three causes of action. One passenger, one contract: each has the right to be transported to
ones destination safely.
EXAMPLE: There are four (4) passengers riding on a public vehicle. They were all injured when the
bus met an accident and all of them were hospitalized. So after they were discharged, the four of them
wanted to sue the bus company for damages arising from contract of carriage or culpa contractual.
They decided to file only one complaint and, in effect, joined the 4 causes of action.
(Remedy here is two: A. file separately: what will be the basis for the filing fees?
- The amount claimed based on each cause of action.

B. Join all causes of action in one complaint as parties-plaintiff. There can be joinder of action if the
parties are properly joined.
Proper joinder of parties: there is common question of fact and law. Here, the cause of action arises
from the same negligence of the bus driver, and also the contract of carriage.
Q: What will be now the basis of jurisdiction the claim of each plaintiff or the totality of the claims
of the 4 plaintiffs?
A: The totality of the claims (add up all amounts involved in such complaint). You apply the totality
rule because the law says where there are several claims or cause of action between the same or
different parties.
Fabian: A joinder of actionis it similar with consolidation of cases?
Justice: No, they are different. Joinder of action: different causes of action arising from the same factual
circumstance, filed in one complaint. In consolidation of cases: different causes of action arising from
different distinct circumstances, and filed in one complaint. Also, the latter refers to different sets of
evidence tried in one case. In criminal cases, there can only be consolidation of cases because as a
rule, each complaint must have different factual circumstances. But consolidation can also mean filing
the civil aspect jointly with the criminal aspect.

Forcible entry, unlawful detainer: there are accion interdictal (ejectment cases) which involved physical
possessiondifferent from accion publiciana (right to possess) and reindivicatoria. These are real
actions, exception: accion interdictal. For real actions, what determines jurisdiction is the principal
amount/assessed value. Accion interdictal (AI): assessed value does not matter. Which court has
jursidcition for AI: First level courts.

26
Midterm CivPro Transcript 2016
EH 403
What are small claims cases?
These are actions purely civil and the prayer is purely for payment or reimbursement of sum of money.
It can also refer to the civil aspect of the criminal action, as long as the amount claimed does not
exceed 100, 000. Asa ang jurisdiction? First level courts.

Now, summary procedure.


- The procedure is summary (intention is to expedite the result of the case), certain procedures
are not applicable here.

Then we have barangay conciliation. It is important because it is a pre-condition in filing some cases. If
you file a case without complying it, that case will be dismissed. Ground of dismissal is not lack of
jurisdiction; but rather, prematurity. All actions which are: (a) purely civil in nature where the claim of
relief prayed for by the plaintiff is solely for payment or reimbursement or sum of money, and (b) the
civil aspect of the criminal action, or reserved upon the filing of the criminal action in court, pursuant
to Rule 111 of the Revised Rules of Criminal Procedure, where the value of the claim does not exceed
One Hundred Thousand Pesos (P100,000.00), exclusive of interest and costs.

What are the cases covered/require barangay conciliation? Practically, all cases.
All disputes are subject to Barangay conciliation pursuant to the Revised Katarungang Pambarangay
Law and prior recourse thereto is a pre-condition before filing a complaint in court or any government
offices, except in the following disputes:
[1] Where one party is the government, or any subdivision or instrumentality thereof;
[2] Where one party is a public officer or employee and the dispute relates to the performance of his
official functions;
[3] Where the dispute involves real properties located in different cities and municipalities, unless the
parties thereto agree to submit their difference to amicable settlement by an appropriate Lupon;
[4] Any complaint by or against corporations, partnerships or juridical entities, since only individuals
shall be parties to Barangay conciliation proceedings either as complainants or respondents [Sec. 1,
Rule VI, Katarungang Pambarangay Rules];
[5] Disputes involving parties who actually reside in barangays of different cities or municipalities,
except where such barangay units adjoin each other and the parties thereto agree to submit their
differences to amicable settlement by an appropriate Lupon;
[6] Offenses for which the law prescribes a maximum penalty of imprisonment exceeding one [1] year
or a fine of over five thousand pesos (P5,000.00);
[7] Offenses where there is no private offended party;
[8] Disputes where urgent legal action is necessary to prevent injustice from being committed or
further continued, specifically the following:
[a] Criminal cases where accused is under police custody or detention [See Sec. 412 (b) (1), Revised
Katarungang Pambarangay Law];
[b] Petitions for habeas corpus by a person illegally deprived of his rightful custody over another or a
person illegally deprived of or on acting in his behalf;
[c] Actions coupled with provisional remedies such as preliminary injunction, attachment, delivery of
personal property and support during the pendency of the action; and
[d] Actions which may be barred by the Statute of Limitations.
[9] Any class of disputes which the President may determine in the interest of justice or upon the
recommendation of the Secretary of Justice;
[10] Where the dispute arises from the Comprehensive Agrarian Reform Law (CARL) [Secs. 46 & 47, R.
A. 6657];
[11] Labor disputes or controversies arising from employer-employee relations [Montoya vs. Escayo, et
al., 171 SCRA 442; Art. 226, Labor Code, as amended, which grants original and exclusive jurisdiction
over conciliation and mediation of disputes, grievances or problems to certain offices of the
Department of Labor and Employment];

27
Midterm CivPro Transcript 2016
EH 403
[12] Actions to annul judgment upon a compromise which may be filed directly in court [See Sanchez
vs. Tupaz, 158 SCRA 459].

NATURE AND PURPOSE


Summary procedure is in accord with the Constitutional mandate for the Supreme Court to promulgate
rules that will provide a simplified and inexpensive procedures for the speedy disposition of cases.

Thats all for today!

November 28
Rule 01
I Introduction/Overview

Preparation Stage
Rule 1 is telling us what are the things to consider in preparing in filing civil actions in court.
First thing to know is what is civil action. What is meant by the word action in civil action.
Next thing to know is who should be parties, what are parties in general. Also equally important is the
requirement which is a preconditioned before filing civil actions in court in all disputes subject of
course to some exceptions. This requirement is the referral to Barangay.
After complying with that requirement or if it falls to the exception to this requirement, the next thing
you do is determine to which court you should file your civil action. Here, the first thing you should do
is determine the jurisdiction. Another important thing to know here is the venue or the court of what
place. But unlike in criminal procedure, venue under civil procedure is merely procedural.
After knowing which court to file, the next thing to do is to prepare your pleadings. Are you going to file
a motion or a pleading? What is the difference between these two. There are also different kinds of
pleadings.
Filing Stage
Having mastered all these rules related to preparation in filing civil actions in court, the next step is the
filing of complaint in court. Now, what are the things that you have to know when you file your
complaint in court?
First is the filing fee. When your case is filed in court which has several branches, what will be done is
that it will be raffled. The purpose of raffling is to avoid parties from seeking a friendly court. Another
purpose is to balance the cases judges handle.
Upon filing the complaint in court, there are certain provisional remedies available.
The next thing is on how the court acquires jurisdiction over the parties, subject matter and the issue.
After this, we will also study the different incidence that can be resolved by the court after the court
has acquired jurisdiction over the parties. Then, we also have definition of issues.
II Discussion Proper

Rules of court do not have retroactive application. It means that these rules cannot be applied to cases
already filed and pending before its promulgation. However, there is an exception to this rule.
We also learned that it is the Supreme Court which has the authority to promulgate these rules. The
constitution, however, provides for certain limitations on these rule making power of court. What are
these limitations?
- That the rules should provide a simplified and inexpensive procedure in order to serve the
purpose which is speedy disposition.

- It should be uniform in all courts of the same grade such that if the rule is applicable in the first
level courts, then the rule should be applied in all first level courts.

- It should not diminish, modify or alter substantive rights. Of course because only the congress
can do that. Substantive rights can only be diminish, increase or change by substantive laws.

Can the Supreme Court suspend the application of these rules?


- Yes. Its basis is just and expeditious proceedings.

28
Midterm CivPro Transcript 2016
EH 403
To which Court are these Rules applicable?
- According to Section 2: These Rules shall apply in all the courts, except as otherwise provided
by the Supreme Court.

- But of course, there are certain rules applicable to each level of courts.

Are there exceptions?


- Yes. Just like the Rules on Summary procedure. They applied to civil actions in first level courts,
but not to all cases in first level courts.

- Another is procedure in small claims cases. Of course, jurisdiction is vested on the first level
courts. But these procedures apply only to cases considered as small claims. They dont apply
to all cases under the first level courts.

- Another example of when the SC says otherwise is Section 4, that the rules shall not apply to
election cases, land registration, cadastral, naturalization, insolvency proceedings and other
cases not herein provided for except by analogy. Although it says that rules applicable to these
specifically mentioned exceptions are silent, you can apply these rules supletorily not primarily.

Sec. 3. Cases governed. These Rules shall govern the procedure to be observed in actions, civil or
criminal, and special proceedings.
Why is there a mention of criminal and special proceedings when we are talking of civil proceedings?
- As provided in rule 1 (General provisions), these rules apply to cases common to these actions.

When is an action civil?


- Section 3 defines it as: A civil action is one by which a party sues another for the enforcement
or protection of a right, or the prevention or redress of a wrong.

- When you say Civil, it means it governs the actions of individuals as among themselves as
parties.

- When do individuals become parties?

o When one is seeking for enforcement of a right or seeking redress for a wrong
committed against him.

Thus, there are two parties in a civil action: the one claiming or enforcing the right and the one alleged
to have violated such right.
Special proceeding is different because the purpose of special proceeding is not the enforcement of a
right or seeking redress for a wrong rather the purpose here is to establish a fact or status or right.
Concrete example is adoption. Here, the objective in filing an action for adoption is to determine the
status of the person adopted. Saying it in other words, the purpose is to establish a fact of relationship
of parent and the adopted. You are not filing that case in order to enforce a right or seek redress for a
wrong.
However, special civil action is still a civil action. it is still for the enforcement of a right or seeking
protection. Only that not the ordinary rules are primarily applicable but special rules. Like for example,
declaratory relief. In an action for declaratory relief you are just protecting your right. In this case, you
are asking the court to construe a law or provision so that your right may be protected.
What is an action?
- An action is the legal and formal demand of ones right from another person made and insisted
upon in a court of justice.

- It is not merely a demand to enforce a right, it must be a demand filed before in a court of
justice. Kay pwede man na na giutangan ka and nagpadala kag demand letter. But is that an
action? a suit? No! What you are just doing is filing your claim before another party. That claim
becomes an action once you file it in court.

CLASSIFICATION OF CIVIL ACTIONS

29
Midterm CivPro Transcript 2016
EH 403
1. As to NATURE (Section 3 [a])
a.) Ordinary Civil Actions
- Kapag ang imu halo-halo way ice cream.
b.) Special Civil Actions
Kung naa kay itlog, special na imung batchoy.

When is civil action special?

o When what governs primarily is special rules. The ordinary rules apply only
suppletorily. When the special rule is silent, then the ordinary rule may be
applied.

Amberti vs CA: The issue here is the filing of petition for certiorari under Rule 45 and
then you withdraw it. What is its effect? How should this be resolved? SC said borrow
the rule on appeal because in a way it is similar because you are asking the superior
court to review. And under the rule on appeal, the effect of withdrawal is that it makes
the judgment final. And that is also applicable in a situation when you file a petition for
certiorari but withdraw. This is an example of the application of the ordinary rules when
the special rules are silent.

2. As to CAUSE or FOUNDATION:
a.) Real Actions
If it is founded on real properties. However, it does not necessarily follow that when an
action involves real property, it is already real action. We can only consider an action to
be founded on real property if the issue on that action is related really to the real
property. When it is related to real property? When the issue is on the ownership or
possession of the real property or any interest in that real property. Otherwise, it is a
personal action.

b.) Personal Actions


You contracted a contractor to construct a house on your lot. But wala magkadimao
ang contractor, you filed an action for damages because of what happened to your
house. This is a personal action because while it involves a real property, the issue
does not involve on who owns the property or who has the right to possess the
property.

c.) Mixed Actions


An action for reconveyance of property with damages. The damages claim is personal
while reconveyance is real. Actually class, if imu jud huna-hunaon wala jud nang
mixed. Bacuse the rule is when you determine what kind of action is the action you are
filing, you have to determine what is the primary objective. In this case, it is the
reconveyance that is the primary. Damages is only incidental to reconveyance.

Why are we studying these classifications?


It is because it is important to determine the venue. It will tell you where to file your
case.

If it is a real action, then you file the case where the subject property is located or the
part of it is located. But if it is a personal action, file it in the residence of the plaintiff
or residence of the defendant at the option of the plaintiff. This is what we call
transitory.

30
Midterm CivPro Transcript 2016
EH 403
3. As to PLACE OF FILING
a.) Local Actions
- you can file it only in that particular place and not in other place
b.) Transitory Actions
- you can file your case in any place based on the venue of the action
4. As to OBJECT
a.) Action In Personam
If the technical object of the suit is to establish a claim generally against some
particular person/s, with a judgment which, in theory, at least, binds his/their body/ies
or to bar some individual claim or objection, so that only certain persons are entitled to
be heard, the action is IN PERSONAM.

If the objective of filing the case is to bind the party/parties in the case only.

Example: an action to collect sum of money to the defendant or his successors in


interest. It does not bind a party or any person or entity that is not impleaded in the
case. Thats why if it is in personam, you have to bind all parties.

Example: An action for specific performance for the breach of contract

b.) Action In Rem


if the object of the suit is to bar indifferently all who might be minded to make an
objection of any sort against the rights sought to be established, and if anyone in the
world has a right to be heard on the strength of alleging facts which, if true, show an
inconsistent interest, the action is IN REM.

If the objective of filing the case is to bind the thing of litigation.

Example: Probate proceeding, a proceeding wherein you tried the validity of the
execution of the will.

Importance of distinction between in personam and in rem


This will determine jurisdiction.

Also because there are different modes of acquiring jurisdiction over the person and the res of
litigation.

Jurisdiction over the person can be acquired by service of summons and only through personal
or substituted service of summons and not by publications. While jurisdiction over the res is
acquired by service of summons by (?). so kung in personam na ang imu gifile, the court is
required to acquire jurisdiction over the person of the defendant. Way problem sa plaintiff
because the rule is upon filing of complaint, the court already acquired jurisdiction.

When we are classifying civil actions based on different categories, actually civil actions can be local,
real and in personam. Because there are different ways of classifying them. When you file an action to
recover ownership of real property, you filed it against the party claiming ownership over that real
property. This is a real action but at the same time, based on your objective is to bind the person of the
other pparty. So it is a real action and at the same time a personal action.
- Dont be confused by real and personal to rem and in personam. The former is based on the
foundation while the latter is based on the objective.

c.) Action Quasi In Rem


A proceeding to subject the interest of a named defendant over a particular property to an
obligation or lien burdening it. Judgment is binding upon particular persons.

An action quasi in rem is actually in personam because it is directed only against a particular
individual but the purpose of the proceeding is to subject his property to the obligation or lien

31
Midterm CivPro Transcript 2016
EH 403
burdening it. The object of the case is the sale or other disposition of property of the defendant
over which you have a right or lien over the property.

It means almost in rem because there is a person named as defendant. It is rem because the
purpose is to bind the interest of that particular defendant to your claim. You want to impose a
lien on the property belonging to the defendant.

Example: Foreclosure of mortgage. The purpose of filing a foreclosure proceeding is to


establish a lien on the property of the defendant and also to bind the person of the defendant.

Example: Attachment. Here, you are asking the court to bind the person of the defendant to
impose a burden on his property.

Partition. You file your partition case to all the co-owners. To bind them with respect to your
share to the property, implead all co-owners.

When summons by publication may be proper in an action in personam-


In Sec. 14, Rule 14, if the identity of the defendant is unknown or whose whereabouts are
unknown, service may, with leave of court, be effected upon him by publication in a newspaper
of general circulation.

If the resident defendant is temporarily out of the country, he may be served by publication
with leave of court.

Special Civil action vs Special Proceeding


In Special Civil Action, there is a special defendant while in Special proceeding, there is none.
There is only a definite party petitioner but not a definite party defendant because special
proceeding is one merely intended to establish status and fact.

The period to appeal in CIVIL ACTIONS is generally 15 days and the requirement is the filing of
a notice of appeal, whereas In SPECIAL PROCEEDINGS the period to appeal is 30 days and
aside from notice of appeal, the law requires the filing of a record on appeal.

Cases where these rules do not apply:


Sec. 4. In what cases not applicable. - These Rules shall not apply to election cases, land
registration, cadastral, naturalization and insolvency proceedings, and other cases not herein
provided for, except by analogy or in a suppletory character and whenever practicable and
convenient.

How do you commence civil action?


Sec. 5. Commencement of an action. - A civil action is commenced by the filing of the original
complaint in court. If an additional defendant is impleaded in a later pleading, the action is
commenced with regard to him on the date of the filing of such later pleading, irrespective of
whether the motion for its admission, if necessary, is denied by the court.

You commenced it by filing the original complaint. This is different from criminal action
because there are pre-filing of cases. Just like preliminary investigation.

The importance of knowing the commencement of civil action is for the purpose of the
prescription.

What about if there is an additional defendant? The second sentence of Section 5 states that,
If an additional defendant is impleaded in a later pleading, the action is commenced with
regard to him on the date of the filing of such later pleading

How are these rules to be construed?

32
Midterm CivPro Transcript 2016
EH 403
Sec. 6. Construction. - These Rules shall be liberally construed in order to promote their
objective of securing a just, speedy and inexpensive disposition of every action and
proceeding.

One final note, while it is true that the Rules of Court should be liberally construed as a general rule,
there are certain provisions which according to the SC, should be strictly construed because they were
intended precisely to minimize delay. These are provisions on:
1. reglementary periods;
2.rule on forum shopping;
3.service of summons

November 29
- No record

December 5
- No record

December 6
- No transcript yet. Hopefully maapas ra.

December 12
PLEADINGS

There are 2 main parties in a civil action: plaintiff and defendant


Plaintiff: Makes a claim

Defendant: Defends against the claim of the plaintiff

Both must be a real party in interest- one who benefits or is prejudiced by the judgment of the
court

Pleadings are the written statements of the respective claims and defenses of the parties
submitted to the court for appropriate judgment (Section 1, Rule 6)

Necessity/Importance:
Process/Means by which a party presents a claim or defense for the court to render judgment

By filing one, the plaintiff submits himself to the jurisdiction of the court ( jurisdiction over the
person); the court acquires jurisdiction over the person of the defendant through service of
summons, still even if no summon was served but the defendant submits his answer, he
submits himself to the jurisdiction of the court

For the court to acquire jurisdiction over the subject matter of the case. It is through the
allegations of the complaint that the court can determine what is the nature of the action ( real
action, not capable of pecuniary estimation)

For the court to acquire jurisdiction over the issues that the parties are raising. When the court
knows the issues, the court can limit the pieces of evidence that the parties can present before
it.

How are these pleadings supposed to be construed? If the law is clear, apply it. If the applicable law is
not clear, the court is mandated to construe the law for it to be able to decide the case
Situation: Allegations of facts in the pleadings are ambiguous- in the case of Concrete Aggregate Corp.
v. CA (266 SCRA 88) Interpret liberally in order to serve the ends of substantial justice

33
Midterm CivPro Transcript 2016
EH 403
However, there is also the rule that the party is bound by what he alleges in his pleading. Therefore,
during the trial, he cannot controvert what he has alleged in his pleading. They are not allowed to
present controverting evidence in relation to what they have alleged.

Different kinds of pleading in a Civil Action:

The claims of a party are asserted in a complaint, counterclaim, cross-claim, third (fourth) party
complaint, or complaint in intervention. The defenses of a party are alleged in the answer to the
pleading asserting a claim against him. (Section 2, Rule 6)

Criminal Action: 1 pleading: Information (no written statement for the accused) or Complaint (if private
crime)
7 kinds of pleading in Civil Actions
Complaint written statement of all the claims that the plaintiff has against the defendant

Answer- written statement containing the defense of the defending party against the claims of
the plaintiff

OTHERS:

Counterclaim- allegations, statements of claim

Cross-claim- statements of claim

3rd party, 4th party complaints- statements of claim

Complaint in intervention

Reply- intended to respond to a pleading containing a claim

One thing in common: containing statements of claim


Common Denominator between ANSWER and REPLY: they are pleadings intended to respond to a
pleading containing a claim
Under the rules of court, these are provisions found under the title: PROCEDURE IN THE RTC- still they
are still applicable in the lower courts UNLESS there are special rules made applicable
EXCEPTION: (1) Rule on Summary Procedure and (2) Rule on Small-claims cases
Rules on Summary Procedures: Allowed pleadings

Counterclaim- compulsory (there are 2 kinds of Counterclaim: (a) Compulsory and (b)
Permissive) (Permissive Counterclaims are not allowed)

Cross-claim

Answer to the complaint

Answer to the Counterclaim

Answer to the cross claim

Rules on Small Claims Cases: (No complaint or answer here)

Verified statement of claim (claiming party)

Verified response (defending party)

34
Midterm CivPro Transcript 2016
EH 403
Counter claim is allowed (whether compulsory or permissive)

Is a MOTION a pleading? NO- as defined a pleading is a written statement of the claiming party or the
defenses of the defending party submitted to the court for judgment in order to terminate the action
When you file a Motion- one is asking for a relief other than the final determination by the court
you are not asking for the court to render judgment over the issues of the case

Example: Motion to Postpone, Motion for Extension to File your Answer


Although there are certain motions the purpose of this is to render final judgment

Example: Motion for Summary Judgment, Motion for Judgment on the Pleadings
Pleadings v Motions:
A pleading can be initiatory; a motion can never be initiatory, you dont commence a civil action by
filing a motion

The number of pleadings is limited to 7; NO limit on number of Motions (depends on any incidental
relief one wants to ask from the court)

Pleadings must be filed before judgment; Motions can be filed even after judgment

Allege address Name of Plaintiff and Defendant and their residences- this is important as this
determines venue; and also for purposes of serving summons (Section 3, Rule 6)

How to determine whether the facts allege in the complaint are sufficient:

Claim is the cause of action-to constitute cause of action- one must allege there the act or omission
constituting the violation of the right of the plaintiff, so you must also the right violated
(The right violated+ the obligation of the defendant to respect such right+ the act or omission +the
injury suffered)
Manner of making Allegations in a Pleading (Rule 8): You are required to state ULTIMATE FACTS- those
essential to ones cause of action (The ultimate facts are: the right violated and the obligation to
respect such, the action or omission, the injury suffered)
Evidentiary Facts: not supposed to be alleged in the complaint- they prove the Ultimate Facts
Sample: Promissory note-Non-payment- filed a Civil Action to Collect- allege in the complaint ultimate
facts-
The ULTIMATE FACTS are: (1) that D borrowed money, (2) executed Promissory note, (3) that D
obligated himself to pay before date specified, (3) that D did not pay and then (4) the damage
caused
Conclusions of Law: not supposed to be alleged In the pleading- Ex: when you say that the
promissory note is valid

How to file your complaint- File it with the Clerk of Court

If it is a multiple sala court, you file with the Clerk of Court common to the court ( not with the Branch
Clerk of Court)
Significance of filing with the Clerk of Court: (1) initiates the civil action; (2) it is a process of
submission to the jurisdiction of the court; (3) it interrupts the running of the prescriptive period of that
specific action
The Right must be an existing right- the right should already be existing (before or at the time of
filing)

What about Rights existing after the filing of the complaint: you file a Supplemental Complaint

35
Midterm CivPro Transcript 2016
EH 403
Additional claims are raised through filing a supplemental complaint: YOU STILL NEED to pay
docket fees in order for the court to acquire jurisdiction over the new issues raised

Answer (also known as Responsive Pleading): pleading intended to respond to the

2 ways on How to controvert allegations in the complaint; (1) negatively OR (2) affirmatively
1. Negative Defense: Specific Denial- Specify what allegations the defendant denies
You should number answers and the denials made Ex: Defendant specifically denies allegations
contained in Par. 1(TIP: use the word specifically)
STILL, it would be better to state the facts and the reason for the denial

How to specifically deny:


Absolute Denial- specifically deny the provision, set forth the substance of the matter upon
which you rely for your denial

Partially Denying an Allegation- not absolute denial- you deny only a part and then admit the
other parts which you believe is true

Denial by Disavowal of Knowledge: you deny knowledge of what is alleged- not knowing what
is alleged-Ex: the defendant have no knowledge on the allegations made in Par. 1 (DO IT IN GOOD
FAITH) - not mandated to be under oath- negative defense need not be under oath

Exception:
(A) When complaint is based on an actionable document (document is the basis of action) - example
Promissory Note
Claiming party alleges non-payment, he/she sends Demand Letter- not actionable document-
not basis of the cause of action- only an actionable document should be denied under
oath
(B) When the complaint alleges Usury in the complaint (not in the answer) - that the defendant
charges interest which is usurious- when you deny this, you should deny it under oath
INSUFFICIENT DENIALS:

GENERAL DENIAL: you have admitted allegations in the complaint; in effect you are not
controverting the allegations in the pleading- allegations in the complaint become fact

NEGATIVE PREGNANT: as applied to an answer appears to be a denial but actually is not; in


form it is a denial but in substance the effect is actually an admission

Example: Denied securing a loan on a specific date- but you do not also deny securing a loan on
another date, this is a negative pregnant

2. Affirmative Defenses: you admit but at the same time you set up defense in order to avoid
liability
Example1: Defendant affirms the fact that he/she borrowed money but also alleges a new
matter- that you actually have already paid or that it was a donation- defendant makes an
admission but defends by setting up a new matter (ADMISSION &AVOIDANCE)

COUNTERCLAIM: any claim that the defending party may have against the claiming party

Example: Defendant already paid the debt so he/she alleges HARRASMENT: and makes claim for
the damages suffered in the value of (_)
A Counterclaim is not an answer as the answer should contain defense- incorporated usually with the
answer
Original Complaint: Claiming Party: Plaintiff, Defending Party: Defendant

36
Midterm CivPro Transcript 2016
EH 403
Counterclaim- Defending Party becomes the plaintiff , the Plaintiff in the original complaint
becomes the defendant

NOTE: Counterclaim must be filed in the same capacity that the plaintiff filed the complaint against
the defendant. If X acted as representative of plaintiff in the complaint filed against D- D wants to file
Counterclaim. D should file against X in his capacity as representative of the plaintiff and not in any
other capacity
2 kinds of Counterclaim:
Compulsory COUNTERCLAIM

ELEMENTS:

o Claim must be cognizable by the regular courts of justice

Example: Debt- D borrowed money from P and P filed a collection case against D. Here D is
an employee of P; if there is alleged illegal dismissal- Can that illegal dismissal be used by
D as a counterclaim against P? NO because that case involves employer-employee
relationship and is not triable by the regular courts

o It arises out of or it is connected with a transaction or occurrence constituting a subject


matter of the opposing partys claim

Example: If defendant alleges harassment as the complaint filed by plaintiff has no basis-
this counterclaim constitutes the same matter / occurrence / transaction involved in the
original complaint filed

But if the Counterclaim of the defendant was for the debt of the plaintiff concerning
another transaction- such is not a compulsory Counterclaim

o It does not require for its adjudication the presence of third parties of whom the court
cannot acquire jurisdiction;

o It must be within the jurisdiction of the court, both as to the amount and the nature
thereof, except that in an original action before the RTC, the counterclaim may be
considered compulsory regardless of the amount; and

Example:

AMOUNT

The principal amount of loan is 250,000 (claimed by the plaintiff triable by MTC), the
defendant files a counterclaim of 500,000 as damages (triable by RTC) this is not
allowed

If the principal amount of the loan is 500,000 (triable by RTC) but the counterclaim of
the defendant is damages in the amount of 250,000- the counterclaim can be tried by
the RTC as long as there is jurisdiction to the principal case

37
Midterm CivPro Transcript 2016
EH 403

NATURE: Unlawful detainer as counterclaim- even if the amount is triable by the RTC
but the nature is not under the jurisdiction of the said court

o The defending party has a counterclaim at the time he files his answer

NOTE1: Any complaint where one of the elements is missing- that becomes a Permissive
Counterclaim

NOTE2: You cannot file a separate action to pursue a compulsory counterclaim but a permissive
counterclaim; you can file that separately as filing that with the defendants answer is optional

Permissive COUNTERCLAIM

Compulsory and Permissive Counterclaim compared:

1. A compulsory counterclaim arises out of or is necessarily connected with the transaction or


occurrence that is the subject matter of the other party's claim, while a permissive counterclaim is
not;

2. A compulsory counterclaim does not require for its adjudication the presence of third parties of
whom the court cannot acquire jurisdiction while a permissive counterclaim may require such;

3. A compulsory counterclaim is barred if not set up in the action, while a permissive counterclaim
is not;

4.A compulsory counterclaim need not be answered, no default, while a permissive counterclaim
must be answered otherwise the defendant can be declared in default.

Cross-Claim: it is a claim by one party against a co-party

Plaintiff filed a complaint against D1 and D2- the defendants can file a cross-claim against each other-
2 debtors were charged but one is just accommodation party (guarantor)- D2 files a cross-claim in case
he becomes liable , D1 must reimburse him
Similarity with Counterclaim: both must arise from the same transaction or occurrence-

LIMITATIONS of a Cross-claim:
1. Must arise out of the subject matter of the complaint or counterclaim;

When there are 2 plaintiffs and one defendant and the defendant has a counterclaim- there
can be a cross claim bet the 2 plaintiffs. (Defendant: I already paid to P1- P2 files a cross claim
against P1 to collect his part of the payment)

38
Midterm CivPro Transcript 2016
EH 403
2. Can be filed only against a co-party; and

3. is proper only when the cross claimant stands to be prejudiced by the filing of the action against
him.

The party making the cross-claim is the Plaintiff in the cross-claim; co-party, against whom the cross-
claim is made, is the defendant in that cross-claim
Distinction1: Counterclaim is filed against the opposing party, a cross-claim is filed against a co-party
Distinction2: When the main action is terminated or dismissed- the cross-claim also dies with it- life
depends on the life of the main action. This is not true with respect to the counterclaim, as the
counterclaim can survive despite death of principal action.
Distinction3: Cross-claim should arise from the same transaction or occurrence that is the subject
matter of the case; A permissive counterclaim does not need to arise from the same transaction-
Consequence when Cross claim is not set-up: IT IS BARRED
If a cross-claim is not set up it is barred: exceptions or when cross-claim is permissive-
1. When it is outside the jurisdiction of the court;

2. If the court cannot acquire jurisdiction over third parties whose presence is necessary for the
adjudication of said cross-claim. In which case, the cross-claim is considered permissive;

3. Cross-claim that may mature or may be acquired after service of the answer

COUNTER COUNTERCLAIM and COUNTER CROSS-CLAIM

(Counter Counterclaim) The defendant in the counterclaim can file a counterclaim against the plaintiff
in the counterclaim; (Counter Cross-claim) Defendant2 also replies to the counterclaim of a co-
defendant
REPLY

A reply is a pleading, the office or function of which is to deny, or allege facts in denial or avoidance of
new matters alleged by way of defense in the answer and thereby join or make issue as to such new
matters. If a party does not file such reply, all the new matters alleged in the answer are deemed
controverted (Section 10, Rule 6)
Answer responds to the claim in the complaint either by alleging negative defenses or affirmative
defenses

The plaintiffs can respond to the affirmative/negative defense by filing a reply-BUT it is not
mandatory to file a reply

So, whether you file a reply or not, the defenses are deemed automatically disputed. The filing of a
reply is OPTIONAL MANDATORY

Exceptions:

1. Where the answer is based on an actionable document (Sec. 8 R 8); Ex.: when the defense is
based on a receipt plaintiff must file a reply otherwise the document would be admitted

2. To set up affirmative defenses in the counterclaim (Rosario vs. Martinez, GR No. L-4473, Sept.
30, 1952)

Distinctions between ANSWER TO COUNTERCLAIM and REPLY:

39
Midterm CivPro Transcript 2016
EH 403
1.) A REPLY is a response to the defenses interposed by the defendant in his answer, whereas

An ANSWER TO A COUNTERCLAIM is a response to a cause of action by the defendant against the


plaintiff; ** there can be a reply to the answer to the counterclaim

2.) The filing of a REPLY is generally optional, whereas the filing of an ANSWER TO A COUNTERCLAIM is
generally mandatory under Rule 11 because if the plaintiff fails to file an answer to the counterclaim,
he will be declared (cannot present your evidence) in default on the counterclaim.

December 13
- No transcript. Walay internet sa ilang lugar.

January 9 (red font color - ang gipuno ni sir sa iyahang notes)

Rule 9
EFFECT OF FAILURE TO PLEAD

Section 1. Defenses and objections not pleaded. Defenses and objections not
pleaded either in a motion to dismiss or in the answer are deemed waived.
However, when it appears from the pleadings or the evidence on record that
the court has no jurisdiction over the subject matter, that there is another
action pending between the same parties for the same cause, or that the
action is barred by a prior judgment or by statute of limitations, the court
shall dismiss the claim.

GENERAL RULE: Defenses or objections not pleaded in a motion to dismiss or on answer are deemed
waived. The court will acquire no jurisdiction over the issues.

The policy is for the parties to lay all their cards on the table.

So, there is no such thing as a surprise defense because the defense must be pleaded.

EXCEPTIONS:

Q: What defenses or objections can be taken cognizance of by the court despite the fact that they
are not raised in the motion to dismiss or answer?
A: Under Section 1, Rule 9, the following:

1 That the court has no jurisdiction over the subject matter;


2 That there is another action pending between the same parties for the same cause (litis
pendentia);
3 That the action is barred by prior judgment (res adjudicata); and
4 That the action is barred by statute of limitation (prescription).

Take note that the exceptions can be raised at any time during or after the trial, or even for the
first time on appeal. In other words, the court shall dismiss the claim if any of the foregoing grounds
appears from the pleadings or the evidence on record.

40
Midterm CivPro Transcript 2016
EH 403
PNB vs. PEREZ (16 SCRA 279)
PEPSI COLA vs. GUANZON (172 SCRA 571)

HELD: The rule on waiver of defenses by failure to plead in the answer or in a motion
to dismiss does not apply when the plaintiffs own allegations in the complaint show clearly
that the action has prescribed in such a case the court may motu propio dismiss the case
on the ground of prescription.

Under the 1964 Rules, one of the grounds that you can raise at any stage of the proceeding before
judgment is failure to state a cause of action, but it disappeared under the new rules. Does it mean to
say that you cannot raise it anymore?

NO. It can still be raised because it can be taken care of by another rule Rule 33 on Demurrer.
(This is doubtful because in a demurrer to evidence the ground is insufficiency of evidence or lack of
cause of action not failure to state a cause of action).

Sec. 2. Compulsory counterclaim, or cross-claim, not set up barred. A


compulsory counterclaim, or a cross-claim, not set up shall be barred. (4a)

See discussions on Rule 6, Sections 7 and 8 on counterclaim and cross-claims, respectively.

RULE ON DEFAULT

Sec. 3. Default; declaration of. If the defending party fails to answer within
the time allowed therefor, the court shall, upon motion of the claiming party
with notice to the defending party, and proof of such failure, declare the
defending party in default. Thereupon, the court shall proceed to render
judgment granting the claimant such relief as his pleading may warrant,
unless the court in its discretion requires the claimant to submit evidence.
Such reception of evidence may be delegated to the clerk of court.

SIR: Defendant when in default is being punished loses his right to present evidence but not loses his
right of notice. Court will decide without need of evidence or court will allow and render judgment.

If he files an answer without appearing, the court can still allow plaintiff to present evidence ex-parte.

Requisites:
-15days as reglementary period
-court cannot motu propio declare defendant in default unless defendant be duly notified
-hearing because it is a litigated motion merits of the motion and there must be proof of the basis
(records of the case).

Steps:
1 P must file a motion and court will issue an order defendant in default
2 Court can either render a judgment by default or issue an order for P to present ex-parte.

D can still file answer (not intended to delay) when there is no order yet.

Will not toll the running of reglementary period of notice of a copy given to the P of the answer.

41
Midterm CivPro Transcript 2016
EH 403
Motion to dismiss/bill of particulars may interrupt/continue the prescriptive period to file an answer
with copy of the same is given to other party.

But when an amendment pleading is filed, the D is now entitled to file another answer.

Remedy of D:
-declaration of default but there is no judgment yet- motion to lift order of default on the 4 grounds
(Fraud, accident, mistake, excusable negligence) but D to show meritorious defense
-must be verified and under oath- motion to set aside order of default
-there is a judgment but not yet final and executory (expiration of appeal) motion for new trial on
the 4grounds (f,a,m,e) plus showing of meritorious defense
-motion for an appeal
-judgment is final
-grave abuse of discretion petition for certiorari

Default is a procedure, which results from the failure of the defendant to file an answer to the
complaint within the period prescribed by the rules.

Thus, defending party is declared in DEFAULT if he fails to answer the complaint within the time
allowed therefor.

In Vlason Enterprise Corp. v. CA, GR Nos. 121662-64, July 6, 1999, the Court sais that a declaration of
default is issued as a punishment for unnecessary delay in joining the issues.

Ground for default-

It is the failure of the defendant to answer within the proper period, not his failure to appear
nor failure to present evidence, which, is the basis of a declaration of default.

Effect of failure of defendant to attend the presentation of evidence for the plaintiff-
The failure of the defendant to attend the hearings for the presentation of the evidence of the adverse
party amounts not to a default, but to a waiver of the defendants right to object to the
evidence presented during the hearing and to cross-examine the witnesses presented.
However, it would not amount to a waiver of the defendants right to present evidence
during the trial dates scheduled for the reception of evidence for the defense. It is error for
the court to issue an order not denominated as an order of default but provides for the application of
the effects of default as when the defendant who has filed an answer is not allowed to present
evidence because of her absence during the presentation of evidence by the plaintiff (Monzon Spouses
Relova vs. Addio Properties, Inc. GR 1712827, September 17, 2008)

Effect of failure of defendant to appear during the pre-trial-

It is not a ground to declare the default in default although the court can order the plaintiff to present
evidence ex-parte and to render judgment on the basis thereof. This is because, while the
consequence may be similar, such effect is not a form of punishment imposed upon a defendant for
his/her failure to join the issues. Thus, the old rule which authorized the court to declare a defendant
who fails to appear during the pre-trial as as in default is no longer found in the present rules.

Requisites before a party may be declared in default:

1 The Court must have acquired jurisdiction over the person of the defendant thru a valid service
of summons or voluntary appearance;

42
Midterm CivPro Transcript 2016
EH 403
2 The defending party must have failed to file his answer within the reglementary period or
within the period fixed by the court;
3 there must be a motion to declare the defendant in default;
4 The defending party must be notified of the motion to declare him in default (Sec. 3 R 9)
5 There must be a hearing of the motion to declare the defendant in default; and
6 There must be proof of such failure to answer.

The required hearing is mandated by Sec. 4 of Rule 15, which states:

Sec. 4. Hearing of motion Except for motions which the court may act upon without prejudicing the
rights of the adverse party, every written motion shall be set for hearing by the applicant.

Take note that the word defending party applies not only to the original defendant but even to the
cross-defendant or defendant in a counterclaim.

Steps when the defendant fails to file an answer within the time allowed:

1 Plaintiff must file Motion to declare defendant in default;


2 Declaration or Order of default; and
3 Rendition of Judgment by Default or judgment based on the complaint of the plaintiff
UNLESS the court requires the claimant to submit evidence (ex-parte presentation of
plaintiffs evidence)

The court cannot motu proprio declare a defendant in default.

The court also has the discretion to extend the time for filing an Answer or admit an
Answer though filed out of time-

The trial court has the discretion not only to extend the time for filing an answer but also to allow an
answer to be filed after the reglementary period.

Where there is no declaration of default yet, answer should be admitted even if filed out of time and no
prejudice is caused to the plaintiff. Where answer has been filed, there can be no declaration of default
anymore. (Guillerma S. Sablas vs. Esterlita S. Sablas and Rodulfo Sablas, GR No. 144568, July 3, 2007)

When a defendant who filed an answer on time can still be declared in default-

Q: If a defendant files an answer but did not furnish a copy of the answer to the plaintiff, can the
plaintiff move to declare the defendant in default?
A: YES, because the answer is deemed to have not been legally filed. It was not in accordance with
the Rules of Court. (Gonzales vs. Francisco, 49 Phil. 47) So the defendant must furnish the plaintiff a
copy of the answer because in the case of

RAMIREZ vs. COURT OF APPEALS


187 SCRA 153

HELD: The failure to furnish a copy of the answer to the adverse party in itself is
sufficient or valid basis for defendants default.

Action of the court after the declaration/order of default

It can do either of the following:

43
Midterm CivPro Transcript 2016
EH 403
1 To proceed to render judgment, or
2 To require the plaintiff to present his evidence ex parte.

Under Section 3, it is discretionary upon the court to require the claimant to submit evidence.
EX-PARTE RECEPTION of evidence is OPTIONAL for the court. And such reception of evidence may be
delegated to the clerk of court. This is related to Section 9, Rule 30:

Rule 30, Sec. 9. Judge to receive evidence; delegation to clerk of court. The
judge of the court where the case is pending shall personally receive the
evidence to be adduced by the parties. However, in default or ex parte
hearings, and in any case where the parties agree in writing, the court may
delegate the reception of evidence to its clerk of court who is a member of
the bar. The clerk of court shall have no power to rule on objections to any
question or to the admission of exhibits, which objections shall be resolved
by the court upon submission of his report and the transcripts within ten
(10) days from termination of the hearing. (n)

The reception of evidence maybe delegated to the clerk of court but the clerk of court must be a
lawyer. That is the condition. So if he is not a member of the bar, he is not authorized to conduct or
hear an ex-parte reception of evidence.

Default judgment disfavored-


In Paramount Insurance Corp., v. A.C. Ordonez Corp., 561 SCRA 327, 334) the Court held that the
hornbook rule is that default judgments are generally disfavored.

Effect of pendency of a Motion to Dismiss or for Bill of Particulars on period to file an


Answer-

Q: May a defendant be declared in default while a motion to dismiss (Rule 16) or a motion for bill
of particulars (Rule 12) remains pending and undisposed of?
A: NO, because under the filing of a motion to dismiss or motion for bill of particulars interrupts the
running of the period to answer. It will run again from the moment he receives the order denying his
motion to dismiss or for bill of particulars. (Hernandez vs. Clapis, 87 Phil. 437)
But said motions must follow the requirements otherwise they will be treated as mere scraps of
paper and will not toll the running of the period to answer.

In the case of
DEL CASTILLO vs. AGUINALDO
212 SCRA 169 [1992]

FACTS: The defendant filed a motion to dismiss under Rule 16 but his motion to dismiss
did not contain notice of time and place of hearing and the motion was denied. Can he file
an answer after filing the motion to dismiss?

HELD: NO. He can be ordered in default. The motion is a useless piece of paper with no
legal effect.
Any motion that does not comply with Rule 16 should not be accepted for filing and if
filed, is not entitled to judicial cognizance and does not affect any reglementary period.
Not having complied with the rules, the motion to dismiss filed by the defendant did not
stay the running of the reglementary period to file an answer.

GOLDEN COUNTRY FARM, INC. vs. SANVAR DEVT CORP.


214 SCRA 295 [1992]

44
Midterm CivPro Transcript 2016
EH 403
FACTS: Because the filing of the motion to dismiss is 15 days, the defendant filed a
motion to dismiss on the 8th day. It was denied. So there is still 7 days to file an answer. On
the 15th day, instead of filing an answer, he filed a motion for reconsideration but such
motion was also denied. Can he still file an answer?

HELD: NO MORE. The filing of the motion to dismiss interrupted the period to file an
answer. When you receive an order, you still have the balance to file your answer. And you
did not file an answer instead, you file a motion for reconsideration. You took the risk. So
defendants motion for reconsideration, which merely reiterated his ground in the motion
to dismiss did not stay the running of the period to file an answer.

Effect of failure to file a response and appear on the date set for hearing under the Rule
of Procedure for Small Claims Cases-

A motion to declare in default is a prohibited motion but the court can render a judgment on the
same day, as may be warranted by the facts. (Sec. 12)

The same Section 12 further provides that if the defendant failed to file a Response within the
reglementary period but appears at the date set for hearing, the court shall ascertain what defense
he has to offer and proceed to hear, mediate or adjudicate the case on the same day as if a
Response had been filed.

Effect of failure to file an Answer under the Rule on Summary Procedure-

The defendant will not be declared in default, instead the court, motu proprio, or on motion of
plaintiff, shall render judgment as may be warranted by the facts alleged in the complaint and
limited to what is prayed for (Sec. 6, II) A motion to declare defendant in default is likewise
prohibited under Sec. 19(h).

a Effect of order of default. - A party in default shall be entitled to


notice of subsequent proceedings but not to take part in the
trial. (2a, R18)

Effect of a declaration/order of default

1 The party declared in default loses his standing in court. The loss of such standing prevents
him from taking part in the trial (Sec. 3[a], Rule 9);
2 While the defendant can no longer take part in the trial, he is nevertheless entitled to notices
of subsequent proceedings (Sec. 3[a], Rule 9)/. It is submitted that he may participate in the
trial, not as a party but as a witness (Cavile vs. Florendo GR No. 73039, Oct. 9, 1987)
3 A declaration of default is not an admission of the truth or the validity of the plaintiffs claims
(Monarch Insurance vs. CA 333 SCRA 7 [2000]; Vlason Enterprises Corp. vs. CA 310 SCRA 26).

So if you are declared in default, you cannot take part in the trial. You lose your standing in court, you
cannot cross-examine the witness of the plaintiff assuming there is a reception of evidence. You cannot
object to his evidence. You cannot even present your own evidence when you are in default.

Right of a party in default

He is entitled to notice of:


1. Motion to declare him in default;
2. Order declaring him in default;

45
Midterm CivPro Transcript 2016
EH 403
3. Subsequent proceedings; and
4. Service of final orders and judgments.

Note: A defendant declared in default cannot take part in the trial, but he cannot be disqualified
from testifying as a witness in favor of non-defaulting defendants (Cavile vs. Florendo GR No. 73039,
Oct. 9, 1987)

Default is not an admission of the allegations in the complaint.

There was an action for reconveyance alleging that with the use of fraud, there was acquisition
of title over a property. The defendants did not file an answer hence; an order of default was issued.
But the plaintiffs failed to prove the fraudulent act. It was contented that the failure to answer is
equivalent to an implied admission of the allegations in the complaint. Is the contention correct? Why?

Being in default, does not imply a waiver of rights, except that of being heard and
of presenting evidence in his favor. It does not imply admission by the defendant of the
facts and causes of action of the plaintiff, because the codal section requires the latter to
adduce his evidence in support of his allegations as an indispensable condition before final
judgment could be given in his favor. Nor could it be interpreted as an admission by the
defendant that the plaintiffs causes of action finds support in the law, or that the latter is
entitled to the relief prayed for. (Heirs of Pedro de Guzman v. Angelina Perona, et al., G.R.
No. 152266, July 2,2010, citing Luxuria Homes, Inc. v. CA, G.R. No. 125986, January 28,
1999, 302 SCRA 315; Delos Santos v. Dela Cruz, 37 SCRA 55 (1971)).

Plaintiff is not automatically entitled to the relief prayed for, once the defendants
are declared in default. Favorable relief can be granted only after the court has
ascertained that the relief is warranted by the evidence offered and the facts proven by
the presenting party. Otherwise, it would be meaningless to require presentation of
evidence if every time the other party is declared in default, a decision would
automatically be rendered in favor of the non-defaulting party and exactly according to the
tenor of his prayer. This is not contemplated by the Rules nor is it sanctioned by the due
process clause. (Heirs of Pedro de Guzman v. Angelina Perona, et al., G.R. No. 152266, July
2, 2010, citing Pascua v. Florendo, 220 Phil. 588; Gajudo v. Traders Royal Bank, 485 SCRA
108 (2005)).

Effect of filing of an amended complaint upon defaulted defendant

If the defendant was declared in default upon an original complaint, the filing of the amended
complaint results in the withdrawal of the original complaint, hence, the defendant is entitled to file an
answer to the amended complaint as to which he was not in default.

Judicial discretion to admit answer filed out of time

It is within the sound discretion of the trial court to permit the defendant to file his answer and to
be heard on the merits after the reglementary period for filing the answer expires. The Rules of Court
provides for discretion on the part of the trial court not only to extend the time for filing an answer but
also to allow an answer to be filed after the reglementary period. It is not correct to say that a trial
court has no recourse but to declare a defending party in default when he fails to file an answer within
the required period. In fact, the rule is that the answer should be admitted where it is filed
before a defending party is declared in default and no prejudice is caused to the other
party and that there is no showing that the defendant intends to delay the case (Sablas vs.
Sablas GR 144568, July 3, 2007) The hornbook rule is that default judgments are generally disfavored
(Paramount Insurance Corp., vs. A.C. Ordonez Corporation, GR No. 175109, August 6, 2008).

46
Midterm CivPro Transcript 2016
EH 403
Current Judicial Trend on Default

The current judicial trend is to avoid defaults and thus, courts are enjoined to be liberal in
setting aside orders of default. (Ampeloquio vs. CA 333 SCRA 465

The issuance of orders of default should be the exception rather than the rule and to be allowed only
in clear cases of obstinate refusal by the defendant to comply with the orders of the trial
court (Lorbes vs. CA GR 139884 February 15, 2001) because suits should as much as
possible, be decided on the merits and not on technicalities (Samartino vs. Raon GR 131482
July 3, 2002). Thus, in practice, an answer under oath containing the defenses of the defendant, may
under the rules on liberal interpretation, be deemed as equivalent of an affidavit of merit.

The policy of the law is to have every litigants case tried on the merits as much as possible. Hence,
judgments by default are frowned upon. A case is best decided when all contending parties are able to
ventilate their respective claims, present their arguments and adduce evidence in support thereof.
(Sablas vs. Sablas GR 144568 July 3, 2007).

HOW TO LIFT ORDER OF DEFAULT

b Relief from order of default. - A party declared in default may at


any time after notice thereof and before judgment file a
motion under oath to set aside the order of default upon
proper showing that his failure to answer was due to fraud,
accident, mistake or excusable negligence and that he has a
meritorious defense. In such case, the order of default may be
set aside on such terms and conditions as the judge may
impose in the interest of justice. (3a, R18)

Summary of Remedies of a defending party declared in default:

a Remedy after notice of order and before judgment The defendant must file a motion
under oath to set aside the order of default and show that (a) the failure to answer was
due to fraud, accident, mistake or excusable negligence (FAMEN) and that (b) the defendant
has a meritorious defense, i.e., there must be an affidavit of merit (Sec. 3[b], Rule 9);
Villareal vs. CA 295 SCRA 511; Republic vs. Sandiganbayan GR No. 148154, December 17,
2007; Republic vs. Sandiganbayan, 540 SCRA 431)

Steps the defendant should take to set aside the order of default:
1 File a motion to lift or set aside the order of default. The motion must be verified and under
oath;
2 He must explain why he failed to file an answer due to FAME; and
3 He must also show that he has a meritorious defense.
In such a case, the order of default may be set aside on such terms and conditions as the judge may
impose in the interest of justice (Sec. 3b)

Meaning, even if you are a victim of FAME, if you have no meritorious defense, the court will not lift the
order of default.

Q: When can the defendant avail of this remedy?


A: He may file a motion to set aside the order of default at any time after notice thereof and before
judgment.

47
Midterm CivPro Transcript 2016
EH 403

b Remedy after judgment and before judgment becomes final and executor The
defendant may file a motion for new trial under Rule 37 . He may also appeal from the
judgment as being contrary to the evidence or the law (Talsan Enterprises, Inc. vs. Baliwag
Transit, Inc. 310 SCRA 156; Lina vs. CA 135 SCRA 637)

c Remedy after the judgment becomes final and executory The defendant may file a
petition for relief from judgment under Rule 38 (Balangcad vs. Justices of the CA GR No.
83888, February 12, 1992; Republic vs. Sandiganbayan [supra])

d Where the defendant has however, been wrongly or improvidently declared in default,
the court can be considered to have acted with grave abuse of discretion amounting
to lack of jurisdiction and when the lack of jurisdiction is patent in the face of the judgment or
from the judicial records, he may avail of the special civil action of certiorari under Rule
65 (Balangcad vs. Justices, supra)

Flow Chart of Remedies from Judgment by Default

Judgment by default

Motion for New Trial or Reconsideration at any time after service of judgment by default and within 15
(30) days therefrom

Failure to file Motion for New Trial/Reconsideration or Denial of said Motion

Perfect Appeal from said judgment by default within the balance of said 15 (30) day period

Failure to Appeal without defendant's fault

Petition for Relief from Judgment within 60 days from notice of judgment but within 6 months from
entry thereof

Annulment of Judgment under R 47

Implied Lifting of the Order of Default

While it is true that there was no positive act on the part of the court to lift the default order because
there was no motion nor order to that effect, the anti-graft courts act of granting respondent the
opportunity to file a responsive pleading meant the lifting of the default order on terms the court
deemed proper in the interest of justice. It was the operative act lifting the default order and
thereby reinstating the position of the original defendant whom respondent is representing, founded
on the courts discretionary power to set aside orders of default.

PARTIAL DEFAULT

(c) Effect of partial default. - When a pleading asserting a claim states a


common cause of action against several defending parties, some of whom
answer and the others fail to do so, the court shall try the case against all

48
Midterm CivPro Transcript 2016
EH 403
upon the answers thus filed and render judgment upon the evidence
presented.

SIR: Cause of action must be common.

Damages- not award unliquidated damages must be determined and fixed by report and evidence
must be presented.

The principle here is that, the answer filed by the answering defendant will automatically benefit
the non-answering defendant.

Effect of partial default-

In all instances where a common cause of action is alleged against several defendants,
some of whom answer and the others do not, the latter or those in default acquire a vested right
not only to own the defenses interposed in the answer of their co-defendant or co-
defendants not in default but also to expect a result of the litigation totally common with
them in kind and in amount whether favorable or unfavorable (Remigia Grageda, et al., vs.
Hon. Nimfa Gomez and Haudiny Grageda, GR No. 169536, Sept. 21, 2007).

The best example would be a promissory note signed by both B and C and they bound themselves
solidarily. Both of them were sued. B answered while C did not, hence he is in default. Can there be a
default judgment against C? NO, there will still be a trial based on the answer of B. In effect, B will
defend not only himself but also C.

Q: Suppose during the trial, B proved that the obligation has been extinguished, which is also
applicable to C, and the complaint is dismissed, what is the effect?
A: Both will win the case. So C will be benefited by the answer of his co-defendant B. Hence, there
is still a possibility that a defaulted defendant can win based on our example.

On the other hand it is absurd if the answer of B will not benefit the defaulting defendant.
EXAMPLE: Gary filed a case against B and C based on a promissory note on a loan secured by both,
and C defaulted. B answered alleging payment. Suppose, B proved such defense, the effect is both B
are absolved. If you say that C should lose because the answer of B will not benefit C, there will be two
conflicting decisions: C is in default and thus, should pay the loan; and there is no more loan as far as
B is concerned. Do you mean a loan is paid and at the same time unpaid? Thats absurd!

But take NOTE that to apply the principle, there must be a common cause of action. If there is
no common cause of action, while there may be a trial, the answer of B is only for him. After the trial, B
might be absolved from liability but the defaulting defendant C will be held liable because Bs answer
does not cover C. That is when there is no common cause of action. In the case of

CO vs. ACOSTA (134 SCRA 185 [1985])


reiterating the case of
LIM TANHU vs. RAMOLETE (66 SCRA 425)

FACTS: B and C were (solidary debtors) sued by Gary for a loan evidenced by a
promissory note. B filed an answer but C defaulted. The case was tried based on Bs
answer. Gary moved to drop B from the case but retained C, the defaulted defendant so
that Gary can secure an immediate judgment.

ISSUE: Is the motion of Gary proper?

49
Midterm CivPro Transcript 2016
EH 403
HELD: NO. When there is a common cause against two or more defendants, if you drop
the case against one, you drop the case against all. Selection is not allowed. To drop B
means that the cause of action against him is weak. Why should one drop somebody if a
case against such person is meritorious? If such is the fact, necessarily the cause of action
against the other is also weak the fact there is actually a common cause of action.

However, the ruling in ACOSTA should not be confused with the ruling in

IMSON vs. COURT OF APPEALS [1996 BAR]


239 SCRA 58 [1994]

FACTS: Imson was driving a Toyota Corolla when he was bumped by a Hino Truck
causing injury to Imson and totally wreaking his car. So he filed an action for damages
against several defendants. He impleaded all of them the driver, the bus company owner
and the insurance company. The insurance company filed an answer but the owner and
the driver did not. So both the owner and the driver were declared in default.
Subsequently, lmson and the insurance company entered into a compromise
agreement wherein the latter paid him P70,000 which was its total liability under the
insurance contract but constituted only a part of the total claim.
So when the case (between Imson and the insurance company) was eventually
dismissed because of the compromise agreement, the bus company owner also moved to
dismiss the case against him and the driver, arguing that since they are all indispensable
parties under a common cause of action, the dismissal of the case against the insurance
company should likewise result to the dismissal of the case against them citing the case of
ACOSTA and RAMOLETE.

ISSUE #1: Is there a common cause of action among the three of them?
HELD: The owner is wrong. There is NO common cause of action. The cause of action
against the driver is based on quasi-delict under Article 2178 of the Civil Code. The liability
against the owner is also based on quasi-delict but on another provision of the Civil Code
Article 2180 (the liability of the employer for the delict or wrong of the employee) So, the
liability of the owner and the driver is based on quasi -delict but under separate provisions
of the Civil Code.
Now, the cause of action against the insurance company is not based on quasi-delict
but based on contract because he seeks to recover liability from the insurance company
based on the third-party liability clause of the insurance contract with the company.
So, there is no common cause of action among them.

ISSUE #2: Is the insurance company an indispensable party? Because if it is so and he


is removed from the case, the case cannot proceed without him.
HELD: NO. The insurance company is not an indispensable party.
It is true that all of Imsons claims in the civil case is premised on the wrong
committed by defendant truck driver. Concededly, the truck driver is an indispensable
party to the suit. The other defendants, however, cannot be categorized as indispensable
parties. They are merely necessary parties to the case. It is easy to see that if any of them
had been impleaded as defendant (meaning, the insurance company or the owner was
impleaded), the case would still proceed without prejudicing the party not impleaded.
Thus, if petitioner did not sue the insurance company, the omission would not cause
the dismissal of the suit against the other defendants. Even without the insurer, the trial
court would not lose its competency to act completely and validly on the damage suit. The
insurer, clearly, is not an indispensable party. It is a necessary party.

50
Midterm CivPro Transcript 2016
EH 403
(d) Extent of relief to be awarded. - A judgment rendered against a party in
default shall not exceed the amount or be different in kind from that prayed
for nor award unliquidated damages. (5a, R18)

This is what we call LIMITATIONS on a default judgment:


1 The default judgment should not exceed the amount prayed for in the complaint;
2 The default judgment should not be different in kind from that prayed for in the complaint;
3 The default judgment should not award unliquidated damages.

Leticia Diona, represented by her Attorney-in-fact, Marcelina Diona v. Romeo Balangue,


Sonny Balangue, Reynaldo Balangue, and Esteban Balangue, Jr.; G.R. No. 173559. January
7, 2013

Pleadings; relief. It is settled that courts cannot grant a relief not prayed for in the pleadings or in
excess of what is being sought by the party. They cannot also grant a relief without first ascertaining
the evidence presented in court. In Development Bank of the Philippines v. Tecson, this Court
expounded that:
Due process considerations justify this requirement, it is improper to enter an order which exceeds
the scope of relief sought by the pleadings, absent notice, which affords the opposing party an
opportunity to be heard with respect to the proposed relief. The fundamental purpose of the
requirement that allegations of the complaint must provide the measure of recovery is to prevent
surprise to the defendant.

Notably, the Rules is even more strict in safeguarding the right to due process of a
defendant who was declared in default than of a defendant who participated in trial. For instance,
amendment to conform to the evidence presented during trial is allowed the parties under
the Rules. But the same is not feasible when the defendant is declared in default because
Section 3(d), Rule 9 of the Rules of Court comes into play and limits the relief that may be
granted by the courts to what has been prayed for in the complaint. xxx The raison detre in
limiting the extent of relief that may be granted is that it cannot be presumed that the defendant
would not file an Answer and allow himself to be declared in default had he known that the plaintiff will
be accorded a relief greater than or different in kind from that sought in the Complaint. No doubt, the
reason behind Section 3(d), Rule 9 of the Rules of Court is to safeguard defendants right to due
process against unforeseen and arbitrarily issued judgment. This, to the mind of the Court, is akin to
the very essence of due process. It embodies the sporting idea of fair play and forbids the grant of
relief on matters where the defendant was not given the opportunity to be heard thereon.

MANGELIN vs. COURT OF APPEALS


215 SCRA 230 [1992]

ISSUE: What is the difference between ex-parte presentation of evidence by virtue of


default judgment AND ex-parte presentation of evidence by failure to appear during the
trial

HELD: In reception of evidence due to DEFAULT ORDER, paragraph [d] applies the
judgment cannot exceed the amount or be different in kind from that prayed for in the
complaint.
BUT if theres an ex-parte reception of evidence against a defendant who filed an
answer but FAILED TO APPEAR during the trial, the limitations in paragraph [d] does not
apply. Therefore in this case, a greater amount than that prayed for in the complaint, or a
different nature of relief may be awarded so long as the same are proved.

51
Midterm CivPro Transcript 2016
EH 403
It may be pointed out that there is a difference between a judgment against a
defendant based on evidence presented ex-parte pursuant to a default order and one
based on evidence presented ex-parte and against a defendant who had filed an answer
but who failed to appear at the hearing. In the former, Section 3 [d] of Rule 9 provides that
the judgment against the defendant should not exceed the amount or be different in kind
from that prayed for. In the latter, however, the award may exceed the amount or be
different in kind from that prayed for.

This is because when there is an ex parte presentation of evidence due to failure to appear in trial,
ones standing in court is not lost. HE can still present evidence later to refute the plaintiffs evidence.
He simply waived the rights attached on particular hearing but not to all subsequent trials. In judgment
by default, he actually loses his standing in court.

Q: What is the difference between UNLIQUIDATED damages and LIQUIDATED damages?


A: UNLIQUIDATED DAMAGES are those which are still subject to evidence before it can properly be
awarded such as the presentation of receipts in terms of actual damages, or taking of testimonies to
determine mental anguish or besmirched reputation in cases of moral damages.
LIQUIDATED DAMAGES are those which are already fixed and proof or evidence to establish the
same are not required. An example is an obligation with a penal clause like an agreement to construct
a house and upon failure to finish the same within a stipulated period, the contractor is liable for
P10,000 for every day of delay. The amount is already fixed based on the contract price and the
penalty provided and such other circumstances as stipulated.

So, in an action for unliquidated damages, let the defendant be declared in default anyway the court
can never award those damages. Because if I will answer, damages can be awarded. In other words, I
will win the case simply because there is no way for the court to award the damages. And most
damages are usually those unliquidated damages.

e Where no defaults allowed. - If the defending party in an action for annulment


or declaration of nullity of marriage or for legal separation fails to answer,
the court shall order the prosecuting attorney to investigate whether or not
a collusion between the parties exists, and if there is no collusion, to
intervene for the State in order to see to it that the evidence submitted is
not fabricated. (6a, R18)

Where no defaults are allowed:

1. Annulment of marriage;
2. Declaration of nullity of marriage;
3. Legal Separation;
4. Special Civil Actions of certiorari, prohibition and mandamus where comment instead of an answer is
required to be filed; and
5. Summary Procedure.

Relate this provision of the rule to Articles 48 and 60 of the Family Code:

Family Code, Art. 48. In all cases of annulment or declaration of absolute nullity of
marriage, the court shall order the prosecuting attorney or fiscal assigned to it to
appear on behalf of the State to take steps to prevent collusion between the parties
and to take care that the evidence is not fabricated or suppressed.
In the cases referred to in the preceding paragraph, no judgment shall be based
upon a stipulation of facts or confession of judgment.

52
Midterm CivPro Transcript 2016
EH 403
Family Code, Art. 60. No decree of legal separation shall be based upon a
stipulation of facts or a confession of judgment.
In any case, the court shall order the prosecuting attorney or fiscal assigned to it to
take steps to prevent collusion between the parties and to take care that the evidence
is not fabricated or suppressed.

Judgment by default for refusal to comply with the modes of discovery

The rule is that a default order and consequently a default judgment is triggered
by the failure of the defending party to file the required answer (Sec. 3 Rule 9).
By way of exception, a judgment by default may be rendered in the following
cases despite an answer having been filed:

a If a party refuses to obey an order requiring him to comply with the various
modes of discovery (Sec. 3[c] Rule 29; or
b If a party or officer or managing agent of a party willfully fails to appear
before the officer who is to take deposition or a party fails to serve answers
to interrogatories. (Sec. 5 Rule 29)

Reviewer

Effect of failure to plead (Rule 9)


1. Failure to plead defenses and objections (implied admissions)
Defenses not pleaded in a motion to dismiss or in the answer are deemed WAIVED.
Exceptions:
These defenses may be raised at any stage of the proceedings even for the first time on appeal::
1. Lack of jurisdiction over the subject matter (Note: This may, however, be barred by
laches - Tijam v. Sibonghanoy, G.R. No. L-21450, April 15, 1968)
2. Litis pendentia
3. Res judicata
4. Prescription (LLRP) (Rule 9, Sec. 1) Relate to omnibus motion rule (Rule 15, Sec. 8)

***Laches need not be specifically pleaded and may be considered by the court on its own initiative in
determining the rights of the parties. (Heirs of Valientes v. Ramas, G.R. No. 157852; December 15,
2010) TDC

2. Failure to plead a compulsory counterclaim and cross-claim


Rule 9, Sec. 2. Compulsory counterclaim, or cross-claim, not set up barred.
A compulsory counterclaim, or a cross-claim, not set up shall be barred.

6. Default (Rule 9, Sec. 3)


a. When a declaration of default is proper

What are the grounds for the declaration of default?


a) Failure of a defending party to answer within the time allowed (Rule 9, Sec. 3). This includes failure
to answer a complaint, permissive counterclaim, cross-claim, third-party complaint, etc.
b) Wilful failure to appear before an officer to make a deposition, after being served with a proper
notice, or failure to serve answers after proper service of interrogatories (Rule 29, Sec. 3)
c) Failure to appear at pre-trial (Rule 18, Sec. 5)

NOTE:
1. A declaration of default cannot be made by the court motu proprio; there must be a motion to that

53
Midterm CivPro Transcript 2016
EH 403
effect (The Philippine British Co., Inc. vs. De Los Angeles, 63 SCRA 50 [1975]).

2. If no motion to declare defendant in default is filed, the complaint should be dismissed for failure to
prosecute.

3. A defendants answer should be admitted where it had been filed before it was declared in default,
and no prejudice is caused to plaintiff (Indiana Aerospace University vs. CHED. 356 SCRA 367 [2001])

b. Effect of an order of default


a. A party in default LOSES HIS STANDING in court. He cannot appear therein, adduce evidence and be
heard nor take part in trial. He cannot file a motion to dismiss without first filing a motion to set aside
the order of default. He loses his right to present evidence, control the proceedings and examine the
witnesses or object to plaintiffs evidence.

b. A motion to declare the defending party in default should be served upon him. A party in default,
however, shall be entitled to NOTICE of subsequent proceedings but not to take part in the trial.

c. Being declared in default does not constitute a waiver of all rights. What is waived is only the RIGHT
TO BE HEARD and to PRESENT EVIDENCE during trial while default prevails.
A party in default is still entitled to notice of final judgments and orders and proceedings taken
subsequent thereto. He may be cited and testify as a witness.

d. A party VALIDLY declared in default irreparably loses the right to participate in the trial. A defendant
IMPROVIDENTLY declared in default may retain and exercise such right to participate in the trial after
the order of default and the subsequent judgment by default are annulled and the case remanded to
the court of origin. The former can only appeal. The latter may file a petition for certiorari (Indiana
Aerospace University vs. CHED, supra).

c. Relief from an order of default


Summary of the Remedies in Default
a. From notice of the order of default but BEFORE JUDGMENT
(1) motion to set aside order of default under Rule 9, Sec. 3(b)
(2) in a proper case, petition for certiorari under Rule 65.

b. AFTER JUDGMENT BUT BEFORE FINALITY


(1) motion for reconsideration under Rule 37, Section 1
(2) motion for new trial under Rule 37, Section 1
(3) appeal under Rule 41, Section 1

c. AFTER FINALITY OF JUDGMENT


(1) petition for certiorari under Rule 65
(2) petition for relief from judgment under Rule 38
(3) petition for annulment of judgment under Rule 47.

d. Effect of a partial default


Rule 9, Section 3(c). Effect of partial default . When a pleading asserting a claim states a common
cause of action against several defending parties, some of whom answer and the others fail to do so,
the court shall try the case against all upon the answers thus filed and render judgment upon the
evidence presented.

e. Extent of relief
Two (2) kinds of Proceedings after Declaration of Default and the Extent of Relief that may be Granted
(a) Without hearing
The Court may immediately render judgment granting the claimant such relief as his pleading may

54
Midterm CivPro Transcript 2016
EH 403
warrant. Such relief however shall not exceed the amount or be different in kind from that prayed for
nor award unliquidated damages. (Rule 9, Sec. 3)

(b) With Hearing


The Court may, in its discretion, allow or require the claimant to submit evidence. Such reception of
evidence may be delegated to the Clerk of Court. After the reception of claimants evidence, the court
may render judgment granting the reliefs prayed for as established by the evidence. It may also award
unliquidated damages without exceeding the
amounts prayed for. (Rule 9, Sec. 3)

f. Actions where default is not allowed


a. Action for
declaration of nullity of marriage;
action for annulment of marriage;
action for
legal separation (Rule 9, Sec. 3 (e))
NOTE: If the defending party fails to answer, the court shall order the prosecuting attorney to
investigate whether or not a collusion exists between the parties, and if there is no collusion, to
intervene for the State in order to see to it that the evidence submitted is not fabricated.

b. Actions governed by the Rule on Summary Procedure and Rule of Procedure for Small Claims Cases,
where a motion to declare defendant in default is not allowed.

c. Special civil actions of certiorari , prohibition and mandamus where comment instead of an answer
is required to be filed.

Rule 10
AMENDED AND SUPPLEMENTAL PLEADINGS

Part I. AMENDMENTS

Sec. 1. Amendments in general. - Pleadings may be amended by adding or


striking out an allegation or the name of any party, or by correcting a
mistake in the name of a party or a mistaken or inadequate allegation or
description in any other respect, so that the actual merits of the controversy
may speedily be determined, without regard to technicalities, and in the
most expeditious and inexpensive manner. (1)

Pleadings may be amended by:


1. adding an allegation of a party;
2. adding the name or substituting a party
3. striking out an allegation of a party;
4. striking out the name of a party;
5. correcting a mistake in the name of a party; and
6. correcting a mistake or inadequate allegation or description in any other respect.

So you can amend by removing something, adding something, or changing something by


substituting another word. You can amend by removing an entire paragraph, an entire sentence, a

55
Midterm CivPro Transcript 2016
EH 403
phrase, or a word. As a matter of fact, before reaching Rule 10, there are provisions where
amendments have already been touched upon, one of which is Rule 1, Section 5:

Sec. 5. Commencement of action.- A civil action is commenced by the filing of


the original complaint in court. If an additional defendant is impleaded in a
later pleading, the action is commenced with regard to him on the date of
the filing of such later pleading, irrespective of whether the motion for its
admission, if necessary, is denied by the court.

Q: What is the policy of the law on amendments?

A: Section 1 says that the purpose of amendment is that the actual merits of the controversy may
speedily be determined without regard to technicalities, and in the most expeditious and inexpensive
manner. According to the SC, amendments to pleadings are favored and should be liberally
allowed in order (a) to determine every case as far as possible on its actual merits without
regard to technicalities, (b) to speed up the trial of cases, and (c) to prevent unnecessary
expenses. (Verzosa vs. Verzosa, L-25603, Nov. 27, 1968; Cese vs. GSIS, L-135814, Aug. 31, 1960)

TYPES OF AMENDMENTS:

The following are the important points to remember here:

FIRST, there are two ways of amendment of pleadings under the rules:
1 An amendment as a matter of right; or
2 An amendment as a matter of judicial discretion

SECOND, there are two types:


1 a formal amendment; or
2 a substantial amendment

SIR:
AS A MATTER OF RIGHT: Remedy file a mandamus if court will not hear your amended pleading. Either
for formal or substantial amendment. You can amend it basta wala pay answer/expiration of period of
reply gi.file as a matter of right and once amend only.

AS A MATTER OF JUDICIAL DISCRETION: Ask leave of court.

Formal and substantial amendment-

Sec. 4. Formal amendments. - A defect in the designation of the parties and other
clearly clerical or typographical errors may be summarily corrected by the court at
any stage of the action, at its initiative or on motion, provided no prejudice is
caused thereby to the adverse party. (4a)

When the amendment is fairly formal, it can be done anytime. As a matter of fact it can be
summarily corrected by the court at any stage of the action, upon motion or even without motion
because anyway that is a harmless correction.

NOTE: Change of amount of damages is only formal because there is no change in the cause of
action.

56
Midterm CivPro Transcript 2016
EH 403
Substantial amendment refers to a change in the cause of action or theory of the case.

These are the same classification under the Rules on Criminal Procedure under Rule 110.

Classification according to how amendment is made-


Amendment as a MATTER OF RIGHT and Amendment as a MATTER OF JUDICIAL DISCRETION

AMENDMENT AS A MATTER OF RIGHT simply means that the party has the unconditional
action or right to amend his pleading. The court has no right to prevent him from amending. The
opposite party has no right to oppose the amendment. If the court refuses to admit the amended
pleading such refusal is correctible by mandamus.

AMENDMENT AS A MATTER OF JUDICIAL DISCRETION simply means that the court may or may
not allow the amendment. This is also known as amendment by leave of court. So the other
party has the right to oppose.

AMENDMENT AS A MATTER OF RIGHT

Sec. 2. Amendments as a matter of right. - A party may amend his pleading


ONCE as a matter of right at any time before a responsive pleading is served
or, in the case of a reply, at any time within ten (10) days after it is served.

SIR: Motion for leave to amend showing not intended to delay.

Grounds for denial- with intent to delay

Before the service of a responsive pleading, a party has the absolute right to amend his pleading,
regardless of whether a new cause of action or change in the theory is introduced (Bautista
vs. Maya-Maya Cottages, Inc. 476 SCRA 416).

Thus, the plaintiff has the right to amend his/her complaint once at any time before an Answer is
served by the defendant or in case of a reply to which no responsive pleading is provided by the
rules, within 10 days after said Reply is served.

As regards the defendant he can amend his/her answer once as a matter of right at any time before
a reply by the plaintiff is filed or before the expiration of the period to file a reply because a
reply may or may be not be filed.

Rule applicable before the trial court not on appeal-

Section 2 refers to an amendment made before the trial court, not to amendments before the
Court of Appeals. The CA is vested with jurisdiction to admit or deny amended petitions filed before it
(Navarro vs. Vda. De Taroma, 478 SCRA 336).

Applicability of Mandamus when the court denies amendment when a matter of right-

The court would be in error if it refuses to admit an amended pleading when its exercise is a matter of
right. This error is correctible by mandamus (Breslin vs. Luzon Stevedoring 84 Phil. 618; Ong Peng vs.
Custodio 1 SCRA 780) because the trial courts duty to admit an amended complaint made as a matter
of right is purely ministerial (Alpine Lending Investors vs. Corpuz 508 SCRA 45).

SUMMARY: Amendment as a matter of right:

57
Midterm CivPro Transcript 2016
EH 403
1 Complaint- before an answer is served;
2 Answer- before a reply is served or before the period for filing a reply expires;
3 Reply- Any time within 10 days after it is served; and
4 Formal amendment- at any time

A motion to dismiss is not a responsive pleading; does not bar amendment as matter of
right-

If a motion to dismiss is filed, an amendment to the complaint would still be a matter of right
during the pendency of the motion to dismiss. Such a motion is not a responsive pleading and its filing
does not preclude the exercise of the plaintiffs right to amend his complaint (Paeste vs. Jadrigue 94
Phil. 179; Republic vs. Ilao 4 SCRA 106; Remington Industrial Sales vs. CA 382 SCRA 499).

In a case, the defendant, instead of filing an answer filed a motion to dismiss on the ground that
the plaintiff is not a juridical person and thus, cannot be a party to the case. The plaintiff filed a motion
to admit an amended complaint, which was admitted by the trial court. As to whether or not plaintiff
could so amend his complaint as a matter of right, the Supreme Court reiterated the rule that a party
may amend his pleading once as a matter of right at any time before a responsive pleading is served.
The Court declared that a motion to dismiss is not a responsive pleading and so the duty of the trial
court is to admit the amended complaint. Such duty is a ministerial one because the amendment,
under the circumstances, is a matter of right. In fact the plaintiff should not have filed a motion to
admit the amended complaint (Alpine Lending Investors vs. Corpuz 508 SCRA 45).

Amendment to correct a jurisdictional defect before a responsive pleading is served, a


matter of right-

A fair reading of jurisprudence recognizes the right of a pleader to amend his complaint before a
responsive pleading is served even if its effect is to correct a jurisdictional defect . The argument that
the court cannot allow such type of amendment since the court must first possess jurisdiction over the
subject matter of the complaint before it can act on any amendment has no application upon an
amendment that is made as a matter of right.

In one case involving litigation over a parcel of land, the complaint filed with the then CFI was a
complaint alleging forcible entry. The defendants filed a motion to dismiss alleging that the court has
no jurisdiction over an action for forcible entry. Without waiting for the resolution of the motion to
dismiss, the plaintiff filed an amended complaint with new allegations which transformed the original
allegations of forcible entry into an action for quieting of title, an action which at that time was
cognizable by the CFI. The trial court admitted the amended complaint, ordered the defendants to
answer it and denied the motion to dismiss. The SC sustained the trial court as being consistent with
the purpose and spirit of the Rules (Gumabay vs. Baralin 77 SCRA 258).

In another case filed before the City Court of Manila to recover unpaid rentals with a prayer that an
order be issued for the surrender of the premises by the defendant to the plaintiff, the defendant filed
a motion to dismiss on the ground that the amount sought to be recovered is beyond the jurisdiction of
the court and that there are no allegations in the complaint showing that the defendant was unlawfully
withholding the premises from the plaintiff. Before action could be taken on the motion to dismiss, the
plaintiff amended the complaint, to include the requisite allegations. The court denied the motion to
dismiss and the opposition to the amended complaint. The court ruled that since no responsive
pleading was served at the time of the amendment, the plaintiff had done so as a matter of course.
Reiterating the rule that a motion to dismiss is not a responsive pleading, the SC sustained the trial
court (Soledad vs. Mamangun 8 SCRA 110).

Even if the motion to dismiss is already granted, the plaintiff can still amend his/her
complaint as a matter of right before the dismissal becomes final (or before the 15 days

58
Midterm CivPro Transcript 2016
EH 403
from service have expired) and as long as no answer has yet been served (Bautista v. Maya-
Maya Cottages, Inc., 476 SCRA 416, 419)

Following the above rule, an amendment to the complaint sought to be made one month after notice
of the order dismissing the complaint can no longer be allowed because the order of dismissal has
already become final due to the failure to perfect an appeal. As a rule, the aggrieved party must
perfect his appeal within the period as provided for by law. The rule is mandatory in character. A
partys failure to comply with the law will result in the decision becoming final and executory and, as
such, can no longer be modified or reversed. Thus, it is beyond the power or jurisdiction of the court
which rendered the decision or order to amend or revoke the same after the lapse of the fifteen-day
reglementary period to file an appeal(National Mines and Allied Workers Union GR 157232, December
10, 2007)

AMENDMENT AS A MATTER OF JUDICIAL DISCRETION

Sec. 3. Amendments by leave of court. - Except as provided in the next preceding


section, substantial amendments may be made only upon leave of court. But such
leave may be refused if it appears to the court that the motion was made with
intent to delay. Orders of the court upon the matters provided in this section shall
be made upon motion filed in court, and after notice to the adverse party, and an
opportunity to be heard. (3a)

Q: When is an amendment a matter of judicial discretion?


A: 1.If the amendment must be substantial; and
2.the adverse party has already filed and served a copy of his responsive pleading.

The plaintiff, for example, cannot as a matter of right after Answer is served, amend his complaint by
changing his cause of action or adding a new one without leave of court (Calo and San Jose vs. Roldan
756 Phil 445; Buenaventura vs. Buenaventura 94 Phil. 193)

Under R 10 Sec. 3 of the 1997 Revised Rules of Court, the trial court is accorded sound discretion to
grant or deny the admission of any proposed substantial amendments to a pleading after a responsive
pleading has been filed. Generally, where the trial court has jurisdiction over the case,
proposed amendments are denied if such would result in delay, or would result in a change
of a cause of action or defense or change the theory of the case, or are inconsistent with
the allegations in the original complaint. (Vivian Locsin, et al., vs. Sandiganbayan, et al., GR No.
134458, August 9, 2007)

The clear import of Sec. 3 of Rule 10 is that under the 1997 Rules, an amendment may now be
allowed by the court even if it substantially alters the cause of action or defense. Xxx. This rule should
only be true when, despite a substantial change or alteration in the cause of action or defense, the
amendments sought to be made shall serve the higher interest of substantial justice, and prevent
delay and equally promote the laudable objective of the Rules which is to secure a just, speedy, and
inexpensive disposition of every action and proceeding. (PPA vs. William GoThong & Aboitiz [WG&A],
Inc. 542 SCRA 406 [2008])

Why discretionary-

After a responsive pleading is filed, an amendment to the complaint may be substantial and will
correspondingly require a substantial alteration in the defenses of the adverse party. The
amendment of the complaint is not only unfair to the defendant but will cause unnecessary
delay in the proceedings. Leave of court is thus, required. On the other hand, where no responsive

59
Midterm CivPro Transcript 2016
EH 403
pleading has yet been served, no defenses would be altered. The amendment of the pleading will not
then require leave of court (Siasoco vs. CA 303 SCRA 186).

Even if discretionary amendment allowed

Q: Assuming that the amendment is a matter of judicial discretion, how should the court resolve it?
A: Based on established jurisprudence, the court should always allow the amendment because of
the liberal policy of the rules. Amendments of pleadings should be liberally allowed in
order that the real merits of the case can be ventilated in court without regard to
technicalities. So the court will always lean on allowing a pleading to be amended. That is the
liberal policy.

LIMITATIONS TO THE LIBERAL POLICY IN AMENDMENTS TO PLEADINGS

Q: What are the limitations to this liberal policy in allowing amendments? Meaning, when can the
court refuse to allow the amendment and when can you validly oppose it?
A: The following:
1 when the amendment is to delay the action (Section 3);
2 when the amendment is for the purpose of making the complaint confer
jurisdiction upon the court (Rosario vs. Carangdang, 96 Phil. 845);
3 when the amendment is for the purpose of curing a premature or non-existing
cause of action (Limpangco vs. Mercado, 10 Phil. 508; Wong vs. Yatco, 99 Phil.
791)
4 When the cause of action, defense or theory of the case is changed.

1.) WHEN THE AMENDMENT IS TO DELAY THE ACTION

The second sentence of Section 3 says that such leave may be refused if it appears that the
motion was made with intent to delay. Meaning, the motion to amend is dilatory. Example: a case is
filed against the defendant based on a cause of action then trialtrialthen the case is already about
to end. Then the plaintiff says he wants to amend his complaint and change his cause of action. I
dont think the court will allow it. Thats too much.

Or, the defendant will say that he would like to change his defense. I dont think the court will
agree with that situation because it appears that the motion to amend is already dilatory. Why did it
take you one year to realize that your cause of action or your defense is wrong? So that is a limitation
where the court may refuse to apply the principles on liberality. The liberal policy becomes weaker or
is working against you the longer you delay your amendment because it might already be interpreted
to be dilatory.

MARINI-GONZALES vs. LOOD


148 SCRA 452

HELD: While the Rules of Court authorize the courts to disallow amendment of
pleadings when it appears that the same is made to delay an action or that the cause of
action or defense is substantially altered thereby, the rule is not absolute. It is
discretionary.
Courts are not precluded from allowing amendments of pleadings even if
the same will substantially change the cause of action or defense provided that
such amendments do not result in a substantial injury to the adverse party. This
is due to the permissive character of said rule [which provides: may refuse]. In fact, this

60
Midterm CivPro Transcript 2016
EH 403
Court has ruled that amendments to pleadings are favored and should be liberally allowed
in the furtherance of justice.

2.) WHEN THE AMENDMENT IS FOR THE PURPOSE OF MAKING THE COMPLAINT CONFER JURISDICTION
UPON THE COURT

Amendment to correct a jurisdiction defect after a responsive pleading is served

An amendment of the complaint to correct a jurisdictional error cannot be validly done after a
responsive pleading is served. The amendment this time would require leave of court, a
matter, which requires the exercise of sound discretion. The exercise of this discretion
requires the performance of a positive act by the court. If it grants the amendment, it
would be acting on a complaint over which it has no jurisdiction. Its action would be one
performed without jurisdiction.

The situation is vastly different from an amendment as a matter of right. Here the court does not
act. The admission of the amendment is a ministerial duty of the court. It requires no positive action
from the court. Since it would not be acting in this regard, it could not be deemed as acting without
jurisdiction.

In one case, a former employee filed an action for recovery of compensation for unpaid holiday and
overtime services with the then Court of Industrial Relations against his former employer. The
defendant filed a motion to dismiss but was denied. The defendant-employer then filed an answer
invoking as one of its affirmative defenses lack of jurisdiction of the court over the subject matter since
the complaint did not allege the existence of an employer-employee relationship between the parties.
The complaint alleged neither illegal dismissal nor seeks for the reinstatement of the plaintiff. Realizing
a jurisdictional error, the plaintiff filed leave to amend his complaint and to admit an amended
pleading alleging illegal dismissal and a claim for reinstatement. Speaking on the issue of the propriety
of the admission of the amendment, the SC ruled that a complaint cannot be amended to confer
jurisdiction on the court in which it was filed, if the cause of action originally set forth was not within
the courts jurisdiction (Campos Rueda Corp. vs. Bautista 6 SCRA 240; Rosario vs. Carandang 96 Phil.
845). Note that in Campos Rueda, an answer has already been served and filed.

Similarly, in an action for damages filed before the then CFI against a sheriff for an alleged illegal
levy upon the property of the plaintiff, the latter sought to amend his complaint after an answer has
been served by the defendant. The amendment was made when the plaintiff realized that the amount
alleged as damages was below the jurisdiction of the court. The SC held that it was error to admit the
amendment because the court must first acquire jurisdiction over the subject matter of the complaint
in order to act validly on the same including its amendment (Gaspar v. Dorado 15 SCRA 331).

The rule here is when on its face, the complaint shows that the court has no jurisdiction over the
subject matter, the court has no authority to act in the case. And if you move to amend it and ask the
court to allow the amendment, you are assuming that the court has the authority to act on the case.
But the court cant allow it because the court has no authority to act. So the court even is not
authorized to allow the amendment because it has no authority to act in the first place. How can you
allow something when you do not have the authority to act?

So according to the SC, when on its very face the complaint shows that the court has no
jurisdiction, the court has only one authority and its only authority is to dismiss the case. So with that
an amendment cannot confer jurisdiction.

61
Midterm CivPro Transcript 2016
EH 403
3.) WHEN THE AMENDMENT IS FOR THE PURPOSE OF CURING A PREMATURE OR NON-EXISTING
CAUSE OF ACTION

Meaning, on its very face, there is no cause of action, there is no case. There is no delict
or there is no wrong. Now how can you create a delict or wrong by amending your complaint? In
effect, you are creating something out of nothing.

No amendment where no cause of action exists at the time of filing-

May a complaint that lacks a cause of action at the time it was filed be cured by the accrual of a
cause of action during the pendency of the case?

This was the basic issue raised in one significant case (Swagman Hotels and Travel Inc vs. CA, 455
SCRA 175). When the case was filed none of the promissory notes subject of the action was due and
demandable but two of the notes became due during the pendency of the action.
Sec. 5 of Rule 10 allows a complaint that does not state a cause of action to be cured by evidence
presented without objection during the trial. The trial court ruled that even if the private
respondent had no cause of action when he filed the complaint for a sum of money and damages
because none of the three promissory notes was due yet, he could nevertheless recover on the first
two promissory notes which became due during the pendency of the case in view of the introduction of
evidence of their maturity during the trial.
The court rules that such interpretation is erroneous. It further said:

Amendments of pleadings are allowed under Rule 10 of the 1997 Rules of Civil Procedure in order
that the actual merits of a case may be determined in the most expeditious and inexpensive manner
without regard to technicalities, and that all other matters included in the case may be determined in a
single proceeding, thereby avoiding multiplicity of suits. Section 5 thereof applies to situations wherein
evidence not within the issues raised in the pleadings is presented by the parties during the trial, and
to conform to such evidence the pleadings are subsequently amended on motion of a party. Thus, a
complaint which fails to state a cause of action may be cured by evidence presented during the trial.
However, the curing effect under Section 5 is applicable only if a cause of action in fact
exists at the time the complaint is filed, but the complaint is defective for failure to allege
the essential facts. For example, if a complaint failed to allege the fulfillment of a condition
precedent upon which the cause of action depends, evidence showing that such condition had already
been fulfilled when the complaint was filed may be presented during the trial, and the complaint may
accordingly be amended thereafter. Thus, in Roces vs. Jalandoni, this Court upheld the trial court in
taking cognizance of an otherwise defective complaint which was later cured by the testimony of the
plaintiff during the trial. In that case, there was in fact a cause of action and the only problem was the
insufficiency of the allegations in the complaint. It thus follows that a complaint whose cause of
action has not yet accrued cannot be cured or remedied by an amended or supplemental
pleading alleging the existence or accrual of a cause of action while the case is pending.
Such an action is prematurely brought and is, therefore, a groundless suit, which should be
dismissed by the court upon proper motion seasonably filed by the defendant. The
underlying reason for this rule is that a person should not be summoned before the public
tribunals to answer for complaints which are immature.

BAR QUESTION: How do you distinguish a NON-EXISTENT cause of action from IMPERFECT cause of
action?
A: The following are the distinctions:

1 In a NON-EXISTENT cause of action, there is yet no delict or wrong committed by the


defendant (Limpangco vs. Mercado, 10 Phil. 508) whereas

62
Midterm CivPro Transcript 2016
EH 403
In an IMPERFECT cause of action, a delict or wrong has already been committed and
alleged in the complaint, but the statement cause of action is incomplete (Alto Surety
vs. Aguilar, L-5625, March 16, 1945); and

2 a NON-EXISTENT cause of action is not curable by amendment (Limpangco vs.


Mercado, 10 Phil. 508; Surigao Mine vs. Harris, 68 Phil. 113) whereas
an IMPERFECT cause of action is curable by amendment (Alto Surety vs. Aguilar, L-5625,
March 16, 1945; Ramos vs. Gibbon, 67 Phil. 371).

Prescription and an amended complaint


Rules:
a If the amendment introduces a new and different cause of action, then the
prescriptive period is deemed interrupted upon the filing of the amended
complaint; (Ruymann vs. Dir. of Lands, 34 Phil. 428)

b But where the amendment has not altered or changed the original cause of
action, no different cause of action is introduced in the amended complaint, then
the interruption of the prescriptive period retroacts on the date of the filing of
the original complaint. (Pangasinan Trans. CO. vs. Phil. Farming Co., 81 Phil. 273;
Maniago vs. Mallari, 52 O.G. 180, October 31, 1956)

EXAMPLE: I will file today a case for damages arising from quasi-delict. And then one or two
months from now I will amend my complaint from damages arising from culpa aquiliana to damages
arising from culpa contractual. Is that a different cause of action? Yes, so the prescriptive period for
culpa contractual is deemed filed next month, not this month, because that is a different cause of
action.

EXAMPLE: But suppose I file a case against you for culpa aquiliana, and my claim is one million.
Next month I amend my complaint for damages from one million pesos to two million pesos. Did I
change my cause of action? No, it is still the same cause of actionculpa aquiliana. Therefore, the
prescriptive period is deemed interrupted as of the date of the filing of the original complaint.

AMENDMENTS TO PLEADINGS IN CRIMINAL CASES

Under the rules on criminal procedure, at anytime before the arraignment or before he enters plea,
the amendment of information is a matter of right, either in form or in substance.

EXAMPLE: The prosecution files an information against you for homicide and then the prosecution
wants to agree to murder. Can it be done? YES, for as long as the accused has not yet entered his
plea.

So it is almost the same as in civil cases. For as long as there is no responsive, pleading the
amendment is a matter of right whether in substance or in form.

Q: Now in criminal cases, AFTER the accused had already entered his plea to the original charged,
is amendment still allowed? Can the prosecution still amend?
A: YES. But what is allowed is only formal amendment and with leave of court. Substantial
amendment is 100% prohibited in criminal cases. But in civil cases, formal amendment is still a matter
of right hence, does not require leave of court, while substantial amendment is discretionary.

63
Midterm CivPro Transcript 2016
EH 403
OBJECTIONS AND DEFENSES NOT RAISED ARE DEEMED WAIVED; EXCEPTION

Sec. 5. Amendment to conform to or authorize presentation of evidence. - When


issues not raised by the pleadings are tried with the express or implied
consent of the parties, they shall be treated in all respects as if they had
been raised in the pleadings. Such amendment of the pleadings as may be
necessary to cause them to conform to the evidence and to raise these
issues may be made upon motion of any party at any time, even after
judgment; but failure to amend does not affect the result of the trial of these
issues. If evidence is objected to at the trial on the ground that it is not
within the issues made by the pleadings, the court may allow the pleadings
to be amended and shall do so with liberality if the presentation of the
merits of the action and the ends of substantial justice will be subserved
thereby. The court may grant a continuance to enable the amendment to be
made. (5a)

Section 5 Rule 10 covers two situtations-


1 when evidence is introduced on an issue not alleged in the pleadings because the parties have
expressly agreed on it or no objection was interposed by the other party (implied agreement);
and
2 when evidence is offered on an issue not raised in the pleadings but an objection was
interjected by the other party.

Procedure when issues not raised in the pleadings are tried with the express or implied
consent of the parties-
1. they shall be treated as if raised in the pleadings;
2. pleadings may be amended to conform to the evidence; and
3. failure to amend does not affect the result of the trial of these issues.

As a GENERAL RULE, a party during the trial is not allowed to prove a claim or defense that is not
raised in the pleadings based on Rule 9, Section 1 because the court has no jurisdiction over the issue.
Thats why there is no such thing as surprise claim or defense. Every party is required to lay his/her
card on the table.

The first part of Sec. 5 Rule 10 applies to situations wherein evidence not within the issues raised in
the pleadings, is offered by the parties during the trial and not objected to. In such a case, said issues
not found in the pleadings are deemed to have been tried with the consent of the parties. That being
so, the rule treats the issues as having been raised in the pleadings even if not actually raised.

It also covers situations where a complaint insufficiently states a cause of action. Such insufficiency
may be cured by evidence presented during the trial without objection.

Likewise if a complaint failed to aver the fact that certain conditions precedent were undertaken and
complied with and evidence is presented to prove the same without objection.

As plaintiff-

For example: A complaint filed by a guarantor to collect a sum of money from the debtor fails to state
a cause of action if the complaint does not allege that the creditor of the debtor has been paid by the

64
Midterm CivPro Transcript 2016
EH 403
guarantor even if in fact there was payment. However, if during the course of the proceedings,
evidence is offered on the fact of payment without objection from the debtor, the defect in the
complaint was cured by the evidence. The plaintiff may then move for the amendment of his complaint
to conform to the evidence. (Philippine Export and Foreign Loan Guarantee Corporation vs. Philippine
Infrastructures Inc. 419 SCRA 6).

As to defendant-

EXAMPLE: In a collection case, the defendant in his answer raised a defense that the money obtained
from the defendants was not a loan but a donation. During the trial, he attempted to prove that it was
a loan but it was already fully paid. So he is now proving the defense of payment. He is practically
changing his defense. If you follow Rule 9, Section 1, that is not allowed.
But suppose the parties during the trial had agreed that the defendant will prove that the
obligation is paid, or even if there was no such agreement, the plaintiff failed to object, then it can be
done because issues now raised in the pleadings are tried with the express or implied consent of the
parties. They shall be treated in all respects as if they had been raised in the pleadings.

In the case of implied consent, the best example, then, is when the defendant attempts to prove
payment and the plaintiff FAILED TO OBJECT. So there is now an implied consent by the parties.
Therefore, the case can now be tried on the issue as if they had been raised in the pleadings. That is
what we call the principle of estoppel. The parties are in estoppel because they expressly or
impliedly agreed to try an issue which is not raised in the pleadings. The court will now render
judgment and discuss the evidence and discuss whether the obligation has been paid or not.
Remedy of amendment to conform to the evidence-
The remedy according to Section 5 is to amend the pleadings is to make them conform to the
evidence. That is why the law says: such amendment of the pleadings as may be necessary to cause
them to conform to the evidence and to raise these issues may be made upon motion of any party at
any time, even after judgment.

So even after the judgment, you can amend the pleading in order to harmonize with the evidence.

Procedure of amendment if evidence is opposed; amend first the pleading then present the
evidence-

if the evidence is objected to at the trial on the ground that it was not within the issues made by
the pleadings, the court may allow the pleadings to be amended and shall do so with liberality if
the presentation of the merits of the action and the ends of substantial justice will be subserved
thereby.

Continuance to enable amendment

The last sentence, the court may grant a continuance to enable the amendment to be made.
Continuance means postponement. It means, postponement of the case to allow the defendant to
amend his answer first.

The curing effect under Sec. 5 R 10 is applicable only if a cause of action in fact exists at
the time the complaint is filed. Unless the plaintiff has a valid and subsisting cause of action at the
time his action is commenced, the defect cannot be cured or remedied by the acquisition or accrual of
one while the action is pending, and a supplemental complaint or an amendment setting up such after
accrued cause of action is not permissible. The action in the case at bar is prematurely brought and is,
therefore, a groundless suit, which should be dismissed by the court upon proper motion seasonably
filed by the defendant. The underlying reason for this rule is that a person should not be summoned

65
Midterm CivPro Transcript 2016
EH 403
before the public tribunals to answer for complaints, which are premature. (Swagman Hotels and
Travel, Inc. vs. CA and Neal Christian, GR No. 161135, April 8, 2005)

Part II. SUPPLEMENTAL PLEADINGS

Sec. 6. Supplemental pleadings. - Upon motion of a party the court may,


upon reasonable notice and upon such terms as are just, permit him to serve
a supplemental pleading setting forth transactions, occurences or events
which have happened since the date of the pleading sought to be
supplemented. The adverse party may plead thereto within ten (10) days
from notice of the order admitting the supplemental pleading. (6a)

Supplemental pleading defined


A supplemental pleading is one, which avers facts occurring after the filing of the original pleadings
and which are material to the matured claims and/or defenses therein alleged. (Herrera vol. 1
p. 603)

Needs prior leave of court-


The rule states, upon motion of a party the court may xxx. Thus, the court has discretion to allow it
or not. It may allow it upon such terms as are just.

Cause of action in supplemental pleadings


The cause of action stated in the supplemental complaint must be the same as that stated
in the original complaint. Otherwise, the court should not admit the supplemental complaint (Asset
Privatization Trust vs. CA GR No. 121171, Dec. 29, 1998)

As its very name denotes, a supplemental pleading only serves to bolster or add something
to the primary pleading. A supplemental pleading exists side by side with the original. It
does not replace that which it supplements. Moreover, a supplemental pleading assumes
that the original pleading is to stand and that the issues joined with the original pleading
remained an issue to be tried in the action. It is but a continuation of the complaint. Its usual
office is to set up new facts, which justify, enlarge or change the kind of relief with respect to the same
subject matter as the controversy referred to in the original complaint.

When the cause of action stated in the supplemental complaint is different from the causes of action
mentioned in the original complaint the court should not admit the supplemental complaint; the
parties may file supplemental pleadings only to supply deficiencies in aid of an original pleading, but
not to introduce new and independent causes of action (Young vs. Spouses Sy, 503 SCRA 151).

Answer to a supplemental pleading; not mandatory

Section 6, Rule 10 and Section 7, Rule 11, of the Rules of Court are relevant, thus:

Sec. 6. Supplemental pleadings. xxxxx The adverse party may plead thereto within ten (10) days
from notice of the order admitting the supplemental pleading.
Sec. 7. Answer to supplemental complaint. xxxx The answer to the complaint shall serve as the
answer to the supplemental complaint if no new or supplemental answer is filed.

As can be gleaned from the above provisions, the filing of an answer to the supplemental pleading is
not mandatory because of the use of the word may. This is bolstered by the express provision of the
Rules that the answer to the original pleading shall serve as the answer to the supplemental pleading if
no new or supplemental answer is filed. Thus, the court cannot declare the respondent in default
simply because the latter opted not to file their answer to the supplemental petition (Chan vs. Chan GR
150746, October 15, 2008).

66
Midterm CivPro Transcript 2016
EH 403
Distinctions between an AMENDED pleading and a SUPPLEMENTAL pleading:

FIRST DISTINCTION: As to the allegations


An AMENDED pleading contains transactions, occurrences or events which already happened at the
time the original pleading was filed and could have been raised at the original pleading, but which
the pleader failed to raise in the original pleading because, oversight or inadvertence or inexcusable
negligence. If he wants to raise it, he must amend the pleading. Whereas, A SUPPLEMENTAL pleading
contains transactions, occurrences or events which were not in existence at the time the original
pleading was filed but which only happened after the filing of the original pleading and therefore, could
not have been raised in the original pleading.

This distinction is emphasized in the New Rule Rule 11, Sections 9 and 10:

Rule 11, Section 9. Counterclaim or cross-claim arising after answer. A


counterclaim or cross-claim which either matured or was acquired by a
party after serving his pleading may, with the permission of the court, be
presented as a counterclaim or cross-claim by supplemental pleading
before Judgment.

Rule 11, Section 10. Omitted counterclaim or cross-claim. When a


pleader fails to set up a counterclaim or a cross-claim through oversight,
inadvertence, or excusable neglect, or when justice requires, he may, by
leave of court, set up the counterclaim or cross-claim by amendment
before judgment.

SECOND DISTINCTION: As to effect


In an AMENDED pleading, the amended pleading supersedes the original pleading. The original
pleading is deemed erased. The amended substitutes the original. So from the viewpoint of the law,
the original pleading no longer exists. Whereas, When a SUPPLEMENTAL pleading is filed, it does not
supersede the original pleading. In effect, there are now two (2) pleadings which stand side by side in
the case the original and the supplemental pleadings.

EXAMPLE: Mortz borrowed from Nanding P200,000 payable in 2 yearly installments. Mortz failed to pay
the first installment. Nanding filed a case. While the case is pending, the other installment became
due. Nanding will now file a supplemental pleading and as a result, there will be two (2) complaints for
P100,000 each.

Section 8. Effect of amended pleadings. An amended pleading supersedes the pleading


that it amends. However, admissions in superseded pleadings may be received in
evidence against the pleader; and claims and defenses alleged therein not incorporated
in the amended pleading shall be deemed waived.

This is related to the rule in EVIDENCE on what need not be proved:


judicial notice, and judicial admissions.

Under the rule on evidence, any admission made in a pleading binds the pleader under the doctrine
of judicial admission.
In an amended pleading, all your admissions and evidence in the original pleading no longer exist
because an amended pleading supersedes the pleading it amends The rule is thus, if a pleading is
amended and the amended pleading does not contain the admissions contained in the original

67
Midterm CivPro Transcript 2016
EH 403
pleading, the judicial admission is now converted into an extra-judicial admission and therefore the
court will no longer take judicial notice of that.

So if a party wants to bring to the attention of the court an admission, which is not found there (in the
amended pleading), he/she has to formally offer in evidence the original pleading. Normally, you do
not offer in evidence a pleading because the court takes judicial notice of everything stated in there.
But if the original pleading is now superseded, the original must be offered in evidence to prove an
admission found in the original but not anymore in the amended one. That principle in now found in
Section 8:

THIRD DISTINCTION: The filing of an AMENDED pleading could be a matter of right or of judicial
discretion under Sections 2 and 3; whereas the filing of a SUPPLEMENTAL pleading is always a matter
of judicial discretion under Section 6. There is always leave of court.

Now, let us cite cases, which are relevant to our topic on supplemental pleadings.

LEOBRERA vs. COURT OF APPEALS


170 SCRA 711

FACTS: Karen went to the bank and obtained a loan housing loan. A promissory note
was issued payable next year. After a few months, Karen went back to the bank and
secured a second loan agricultural loan with another promissory note.
When the first note became due, Karen failed to pay. So the bank sued Karen on the
first promissory note. When the case was still going on, the second loan became due. So
the bank sought to file a supplemental complaint against Karen to collect the second loan.
The maturity of the second loan happened after the filing of the first pleading sought to be
supplemented.

ISSUE: Is there a proper supplemental complaint?

HELD: NO. It is improper. Although the plaintiff and the defendant are the same, there
are two separate loans independent of each other as a matter of fact the stipulations are
not identical. It cannot be the subject matter of a supplemental complaint. In this case,
there are many types of loans secured in different terms and conditions.
A supplemental complaint must be based on matters arising subsequent to the
original complaint RELATED to the claim presented therein and FOUNDED on the same
cause of action. It cannot be used to try of another matter or a new cause of action.

A good EXAMPLE for a supplemental complaint is when I borrow money from you for P600,000
payable in three installments. First installment is on February for P200,000; second installment is on
April; and the last installment is on June for the last P200,000. There is no acceleration clause. When
the first installment fell due, I did not pay. So the plaintiff filed a case against me to collect the first
installment. In April, the case is still not yet decided. In fact the second installment again fell due.
Plaintiff moved to file for the supplemental pleading. While the two cases are still pending, the last
installment fell due and again there is failure to pay, so there is another supplemental complaint.
Q: Is that proper?
A: YES because these are not two separate loans but one loan and the installments are
interrelated.

SUPERCLEAN SERVICES INC. vs. COURT OF APPEALS


258 SCRA 165 [1996]

FACTS: Superclean Service Corp. is a company engaged in janitorial services. A


government corporation, the Home Development and Mutual Fund (HDMF) sought a public

68
Midterm CivPro Transcript 2016
EH 403
bidding on who will be the company who shall provide janitorial services to the offices of
the HDMF for the year 1990.
Superclean won as it was the lowest bidder. It was supposed to start providing the
service for the year 1990. However, the HDMF refused to honor the award. So, on
November 8, 1989, Superclean filed in the RTC of Manila a complaint for mandamus and
certiorari against HDMF alleging that at public bidding for janitorial services for the year
1990, it won as the lowest bidder but HDMF refused without just cause, to award the
contract to them,
The problem was that 1990 already ended and the case was still on-going. So it was
already rendered moot and academic. What Superclean did was to file a supplemental
complaint in 1991 alleging that because the contract of service was the furnishing of
janitorial services for the year 1990, the delay in the decision of the case has rendered the
case moot and academic without Superclean obtaining complete relief to redress the
wrong committed against it by HDMF which relied now consists of unrealized profits,
exemplary damages and attorneys fees.

ISSUE: Is the filing of supplemental complaint proper in order to seek a different relief
in view of developments rendering the original complaint impossible of attainment?

HELD: The transaction, occurrence or event happening since the filing of the pleading,
which is sought to be supplemented, must be pleaded in aid of a party's right of defense as
the case may be. [Thats the purpose of the supplemental pleading in aid of the partys
cause of action or defense] But in the case at bar, the supervening event is not invoked
for that purpose but to justify the new relief sought.
To begin with, what was alleged as a supervening event causing damage to
Superclean was the fact that the year for which the contract should have been made had
passed without the resolution of the case. The supervening event was cited not to reinforce
or aid the original demand, which was for the execution of a contract in petitioner's favor,
but to say that, precisely because of it, petitioner's demand could no longer be enforced,
thus justifying petitioner in changing the relief sought to one for recovery of damages. This
being the case, petitioner's remedy was not to supplement, but rather to amend its
complaint. You are actually changing the relief so that the correct remedy is not a
supplemental complaint but an amended complaint.
Be that as it may, the so-called Supplemental Complaint filed by petitioner should
simply be treated as embodying amendments to the original complaint or petitioner may
be required to file an amended complaint. So, meaning, you call it a supplemental
complaint, the court will call it as an amended complaint or the other alternative, require
him to file an amended complaint.

Sec. 7. Filing of amended pleadings. - When any pleading is amended, a new copy of
the entire pleading, incorporating the amendments, which shall be indicated by
appropriate marks, shall be filed. (7a)

When a party files an amended pleading, the amendments should be indicated by appropriated
marks, normally, the amended portion is underlined.

EXAMPLE: A party would to insert an entirely new paragraph. That paragraph would be underlined.
The purpose for such marking is for the court and the opposing party to immediately see and detect
the amendment. If no appropriated mark is provided the court and the lawyer has to compare
everything, paragraph by paragraph, sentence by sentence, line by line. Now, if there are underlines,
the court will just concentrate on the underlined portion. This is for convenience for the parties and the
court.

69
Midterm CivPro Transcript 2016
EH 403
An amendment, which merely supplements and amplifies facts originally alleged in the complaint
relates back to the date of the commencement of the action and is not barred by the Statute of
Limitations which expired after service of the original complaint. (Verzosa vs. CA, GR No. 119511-13,
Nov. 24, 1998)

Section 8. Effect of amended pleadings. - An amended pleading supersedes the


pleading that it amends. However, admissions in superseded pleadings may be
received in evidence against the pleader; and claims and defenses alleged therein
not incorporated in the amended pleading shall be deemed waived.

(Section 8: See discussion on Section 6 on distinctions between an amended and supplemental


pleading; second distinction)

Effect of Amended Pleading


1. An amended pleading supersedes the pleading that it amends;
2. Admissions in the superseded pleading can still be received in evidence against the pleader;
3. Claims or defenses alleged therein but not incorporated or reiterated in the amended pleading
are deemed waived.

It has been held that the original complaint is deemed superseded and abandoned by the
amendatory complaint only if the latter introduces a new or different cause of action (Verzosa vs. CA
299 SCRA 100).

The first sentence is one of the distinctions between an amended pleading and a supplement pleading.
From procedural viewpoint, the original pleading is already non-existent. The court will no longer
consider anything stated there.

EXAMPLE: You say something favorable to me. However, in his amended pleading, he removes
such statement, so that the court will not consider it anymore. Such statement is out of the picture.
Now, if you want to bring to the attention of the court the statement found in the original pleading, you
must offer the original pleading in evidence to consider it all over again. This rule will be considered in
the study of EVIDENCE.

Effect of amendment on admissions made in the original pleading-


Admissions made in the original pleadings cease to be judicial admissions (Ching vs. CA 331 SCRA 16).
They are to be considered as extrajudicial admissions (Bastida vs. Menzi & Co., Inc., 58 Phil. 188; Torres
vs. CA 131 SCRA 224). However, admissions in superseded pleadings may be received in evidence
against the pleader (Sec. 8 Rule 10) and in order to be utilized as extrajudicial admissions, they
must, in order to have such effect, be formally offered in evidence (Ching vs. CA, 331 SCRA 16).

When summons not required after complaint is amended-


Although the original pleading is deemed superseded by the pleading that amends it, it does not ipso
facto follow that the service of new summons is required. Where the defendants have already
appeared before the trial court by virtue of a summons in the original complaint, the amended
complaint may be served upon them without need of another summons, even if new causes of action
are alleged. A courts jurisdiction continues until the case is finally terminated once it is acquired.
Conversely, when the defendants have not yet appeared in court, new summons on the amended
complaint must be served on them. It is not the change of the cause of action that gives rise to
the need to serve another summons for the amended complaint but rather the acquisition
of jurisdiction over the persons of the defendants. If the trial court has not yet acquired
jurisdiction over them, a new summons for the amended complaint is required (Vlason
Enterprises vs. CA 310 SCRA 26).

70
Midterm CivPro Transcript 2016
EH 403
However, where a new defendant is impleaded, summons must be served upon him so that
the court may acquire jurisdiction over his person because logically, the new defendant cannot be
deemed to have already appeared by virtue of summons under the original complaint inn which he
was not yet a [arty (Arcenas vs. CA 299 SCRA 733).

Reviewer
Amendment Amended and Supplemental Pleadings (Rule10)
Amendments in general (See below)
a. Amendment as a matter of right
Rule 10, Sec. 2. Amendments as a matter of right.
A party may amend his pleading once as a matter of right at any time BEFORE a responsive pleading is
served or, in the case of a reply, at any time within ten (l0) days after it is served.

NOTES:
1. The filing by the defendant of a motion to dismiss does not affect the plaintiffs right to amend his
complaint without first securing leave of court because a motion to dismiss is NOT a responsive
pleading.
2. Leave of court is necessary AFTER the filing of a responsive pleading. However, even substantial
amendments may be made under this Rule.
3. But such leave may be refused, if it appears to the court that the motion was made with intent to
delay.

b. Amendments by leave of court


Rule 10, Sec. 3. Amendments by leave of court.
Except as provided in the next preceding section, substantial amendments may be made only upon
leave of court. But such leave may be refused if it appears to the court that the motion was made with
intent to delay. Orders of the court upon the matters provided in this section shall be made upon (a)
motion filed in court, and after (b) notice to the adverse party, and an (c) opportunity to be heard.

c. Formal amendment
Rule 10, Sec. 4. Formal amendments .
A defect in the designation of the parties and other clearly clerical or typographical errors may be
summarily corrected by the court at any stage of the action, at its initiative or on motion, provided no
prejudice is caused thereby to the adverse party.

d. Amendments to conform to or authorize presentation of evidence


Rule 10, Sec. 5. Amendment to conform to or authorize presentation of evidence.
When issues not raised by the pleadings are tried with the express or implied consent of the parties,
they shall be treated in all respects as if they had been raised in the pleadings. Such amendment of
the pleadings as may be necessary to cause them to conform to the evidence and to raise these issues
may be made upon motion of any party at ANY TIME, even after judgment; but failure to amend does
not affect the result of the trial of these issues. If evidence is OBJECTED to at the trial on the ground
that it is not within the issues made by the pleadings, the court may allow the pleadings to be
amended and shall do so with liberality if the (a) presentation of the MERITS of the action and the (b)
ends of SUBSTANTIAL JUSTICE will be subserved thereby. The court may grant a continuance to enable
the amendment to be made.

Amendments to Conform to or Authorize Presentation of Evidence

When issues not raised by the pleadings are tried with the express or implied consent of the
parties
1. They shall be treated in all respects as if they had been raised in the pleadings;
2. Such amendment of the pleadings as may be necessary to cause them to conform to the

71
Midterm CivPro Transcript 2016
EH 403
evidence may be made upon motion of any party at any time, even after judgment;
3. BUT failure to amend does NOT affect the result of the trial of these issues.

If evidence is objected to at the trial on the ground that it is not within the issues made by the
pleadings
1. The court may allow the pleadings to be amended;
2. It shall do so with liberality if the presentation of the merits of the action and the ends of substantial
justice will be subserved thereby;
3. The court may grant a continuance to enable the amendment to be made.

e. Different from supplemental pleadings


Rule 10, Section 1. Amendments in general.
Pleadings may be amended by (a) adding or striking out an allegation or the name of any party, or by
(b) correcting a mistake in the name of a party or a mistaken or inadequate allegation or description in
any other respect, so that the actual merits of the controversy may speedily be determined, without
regard to technicalities, and in the most expeditious and inexpensive manner.

Rule 10, Sec. 6. Supplemental pleadings.


Upon motion of a party the court may, upon reasonable notice and upon such terms as are just, permit
him to serve a supplemental pleading setting forth transactions, occurrences or events which have
happened since the date of the pleading sought to be supplemented. The adverse party may plead
thereto within ten (10) days from notice of the order admitting
the supplemental pleading.

NOTES:
1. The adverse party may plead thereto within ten (10) days from notice of the order admitting the
supplemental pleading. The answer to the complaint shall serve as the answer to the supplemental
complaint if no new or supplemental answer is filed.
2. A supplemental pleading incorporates matters arising AFTER the filing of the complaint.
A supplemental pleading is always filed with leave of court. It does not result in the withdrawal of the
original complaint.

f. Effect of amended pleading


Rule 10, Sec. 8. Effect of amended pleadings .
An amended pleading SUPERSEDES the pleading that it amends. However, admissions in superseded
pleadings may be received in evidence against the pleader; and claims or defenses alleged therein not
incorporated in the amended pleading shall be deemed waived.

What happens to the admissions in the original pleading?


They cease to be judicial admissions. Thus, they are to be considered as extrajudicial admissions and
may be proved by the party relying thereon by formal offer in evidence of such original pleading.
(Ching vs. CA, G.R. No. 110844, April 27, 2000)

Civil Procedure
January 10, 2017

A formal amendment it is a matter of right whether an answer had already been served or not by the
defendant. Substantial amendment, on the other hand, becomes a matter of discretion when there is
an answer served by defendant upon the plaintiff.

72
Midterm CivPro Transcript 2016
EH 403
It becomes discretion for the court to determine whether or not the amendment is intended to delay
the proceedings. We also said yesterday, the rules on amendment are to be liberally construed,
meaning allowing amendments, because the purpose of rules and procedure is not to resolve the case
based on technicalities but based on substantial merits. Allowing amendments even if responsive
pleadings have already been filed is subject to limitations. One, if it is intended to delay it must be
denied. Another is when an amendment, even after a responsive pleading had already been filed, is
intended to confer upon the court jurisdiction over the case, it should be denied. If it is an amendment
as a matter of right, whether substantial or formal, it should be allowed because it is a matter of right
and the rules do not require the courts to act. There is no need for the court to exercise discretion.

If plaintiff finds out that the complaint does not belong to the jurisdiction of the RTC for example, can
before a responsive pleading is served upon him, can amend the complaint and adjust the allegations
in such a way that the nature of the action can fall under the jurisdiction of the RTC. Simple reason is
because you do not need the court to grant such amendment.

Collection of sum of money- principal amount to be collected is 250K, defendant filed a motion to
dismiss on the ground of lack of jurisdiction over the subject matter of the jurisdiction of the RTC. Can
you still amend? Yes, because there is no responsive pleading filed by the defendant yet and it is
matter of right.

Supposing the defendant already filed an answer and in that answer and the defendant cited as an
affirmative defense the courts lack of jurisdiction over the subject matter. Can the plaintiff amend the
complaint to adjust the principal amount to 300K? The answer is it cannot be amended anymore. It is
no longer discretionary and has to be denied by the court. The plaintiff filed the substantial
amendment after the defendant already filed his/her answer, the grant of such amendment becomes
discretionary on the court. And the court can only do that if it had jurisdiction in the first place. Since it
has no jurisdiction, it cannot exercise jurisdiction.

Another amendment not allowed under the liberal policy is if the amendment is for purpose of curing a
premature or non-existing cause of action. For example you filed an action to collect a sum of money,
350K, jurisdiction is under the RTC. The promissory note however has not yet matured, so the action is
premature. The defending party had already served his answer to you as plaintiff, can you still amend?
The answer is no. There is nothing to cure because there no cause of action in the first place.

Distinguish between non-existent cause of action from an imperfect cause of action. Non-existent
means the cause of action has not yet happened. The promissory note matures on Dec 30, 2016 but
because you heard of the debtors bankruptcy, you filed a collection case. That is premature as the
obligation is not demandable yet. Imperfect or incomplete is an existing cause of action but the
statement or the allegation of it is not complete. The cause of action becomes imperfect. What is not
curable is a non-existent cause of action. While an imperfect cause of action is curable by amendment.

When you file a complaint, in relation to the prescriptive period of an action, the effect of that filing is
to interrupt the running of the prescriptive period of that action. What happens if you amend the
complaint? The rule is when the complaint is amended it supersedes. When is the prescriptive period
of the action therefore considered interrupted? Was it at the time of the filing of the original complaint
or at the time the amended complaint was filed? It depends on whether the amendment is a formal or
substantial amendment. If it is a formal amendment, then the prescriptive period is interrupted at the
time of the filing of the original complaint as there is no change in the theory of the complaint.

But if the amendment is substantial, the prescriptive period is considered interrupted at the time of the
filing of the amended complaint. This is significant because there is a ground for dismissal which is
prescriptive period.

73
Midterm CivPro Transcript 2016
EH 403
Section 5 talks about amending a pleading in order to conform with authorized presentation of
evidence. The general rule is you can only prove what is alleged and the court can only entertain
issues raised before it. This is jurisdiction over the issues. SO during the trial, the court is supposed to
allow only evidence relevant to the issues raised. What happens if evidence is presented during the
trial relevant to an issue which is not raised in the pleadings? Can it be allowed? You have to
distinguish whether or not there was consent by the parties to have that issue included to be decided
by the court and therefore allowing presentation of evidence or whether an objection was raised when
the evidence was presented.

If there was consent, which can be express or implied (no objection), so evidence will be allowed by
the court. But go back to the general rule. How do you resolve that conflict? Allow the parties to file
amendments in order to conform to issues raised during the trial. The amendment here comes after
the presentation of evidence.

What happens if the other party objects? And there is a valid ground for objection because you can
only present evidence in relation to issues raised by the parties? The rule says allow time for the
parties to amend the pleadings first so that you can subsequently present evidence that were
objected. These rules will tell us that amendments are supposed to be liberally construed in its favor
because the objective of the rule is to have a case decided based on merits and not on technicalities.
So amendments can be subsequently amended.

Supplemental pleadings

What is the difference between supplement and amend? If the addition did not exist yet at the time of
the filing of the pleading but is related to the cause of action, the remedy is to supplement. If the fact
to be alleged already existed at the time of the filing of the complaint, do not supplement but amend
it. In order for a party to avail of the remedy of supplemental pleading, especially for a supplemental
complaint, the additional allegations must relate to the same cause of action alleged. If it changes the
cause of action, that is not supplemental but is an amendment. Same goes with an answer. If the
defense occurred subsequent to the filing of an answer, you file a supplemental answer.

When you amend, the amended pleading supersedes. The court will consider the amended pleading.
But if you merely filed a supplemental pleading, the original remains. If a complaint is amended and it
is filed, the original complaint is deemed to have not been filed at all. This is significant to the rules of
evidence. The things you alleged in your pleadings are considered your admissions- judicial
admissions. If they are judicial admissions they need not be proven. The court already took judicial
notice of these admissions thus no more need to prove them. The admissions made in the original
pleadings become extra-judicial admissions and the court has not taken notice of them. Defendant
answers but plaintiff moves to amend the complaint, the court admitted it. The original complaint is
superseded. The defendant finds certain allegation in the original complaint to be useful for his
defense. What must he do? He will be required to present in court the original complaint as his
evidence to prove that the plaintiff admitted such facts. Same also goes with the plaintiff. Defendant
amends affirmative defense in his original answer. Plaintiff finds some defenses raised in the original
answer beneficial to him so he presents the original answer as evidence for him. This is because the
court had not taken notice of these admissions anymore.

A supplemental pleading is always a matter of judicial discretion. There must always be a motion with
leave of court before the court can entertain your supplemental pleading.

Section 7: When any pleading is amended, a new copy of the entire pleading, incorporating the
amendments, which shall be indicated by appropriate marks, shall be filed. Amendments are usually
underlined or italicized. Is the court required to issue summons based on the amended complaint? This
is not determined by the amendment of complaint. The requirement of summons is determined by
whether or not the court has acquired jurisdiction over that person. So even if the amendment is

74
Midterm CivPro Transcript 2016
EH 403
substantial in nature, the service of summons is not anymore required because the court has acquired
jurisdiction over such person, if the opposite is true, summons must be served.

RULE 11: When to File Responsive Pleadings


This applies to Responsive Pleadings: answer, reply in relation to answer, and to the answer to counter-
claims etc

Section 1 is the General Rule: the defendant had a period of 15 days after the service of summons
within which to file his answer. Service of summons had 2 purposes: acquire jurisdiction over the
person and due process. Exception: unless a different period is fixed by the court. (Ex. motion for
extension to file and court fixes a period)

In computing the period, exclude the first day, include the last day.
A summon was served upon the defendant April 1, 2016. The defendant has 15 days to file his
responsive pleading. The first day is on the day it was served- April 1, but the rule says do not include
1st day. So start on April 2 and include last day- in short add 15 days to April 1. The last day would be
April 16.

April 16 is supposed to be the last day, but on April 10 the defendant filed a motion to dismiss. It was
denied by the court on June 1 2016. The defendant was served a copy of the notice of denial on June
10, 2016. When is the last day? How many days does the defendant have to file his answer?
Determine how many days have lapsed to know the balance of the 15 day period. The balance should
be counted from the service of the denial. We start on April 2, then 3,4,5,6,7,8,9 you do not include 10,
the date of interruption (the rule is clear). So 8 days were already consumed. So defendant has 7 days
more before the 15-day period expires. Add 7 days to June 10. The last day therefore would be June 17.

If the defendant is a foreign juridical entity, a corporation based outside the PH but doing business
here, what is the period for it to file an answer? The rule is it depends. If that foreign entity doing
business here in PH has designated a resident representative the summons will be served upon it. The
period therefore is 15 days from the service upon the resident representative. Supposing, the foreign
entity has no resident rep, it has 30 days reckoned from receipt of summons by the foreign entity. The
procedure would be to serve it upon the government official designated by law to receive the same
who is duty-bound to transmit it to the head of the foreign entity.

Non-resident defendant and the summon was done extraterritoriality the period is 60 days.

What is the period to file an answer for an amended complaint? It says 15 days from the service of the
copy of the amended complaint. This applies when the amended complaint is a matter of right.
Supposing it is a matter of discretion, if the court grants it, it will issue an order and serve it upon you.
What is the period? 10 days from notice of the court order admitting the same.

Answer to counter-claim or cross-claim- 10 days from service.

Period to file an answer to 3rd/ 4th party complaint- same rule as the answer to the complaint (within 15
days after service of summons, unless a different period is fixed by the court)

Period to file Reply is within 10 days from the service of the pleading responded to. The filing of a reply
is optional.

Answer to supplemental complaint- 10 days from notice of the order admitting the same, unless a
different period is fixed by court. Remember in filing supplemental complaint/ pleading requires leave
of court. So file a motion for leave to file a supplemental pleading that would have to be heard. The

75
Midterm CivPro Transcript 2016
EH 403
court would decide and notice of the decision will be served. But answer to supplemental complaint is
optional.

Existing counterclaim or cross-claim: when either exist but was not pleaded. Compulsory counterclaim
it is deemed waived if permissive it can be separately filed. Cross-claim if not alleged patay jud ka. If
Counterclaim or Cross-claim arose after filing, you dont amend rather you file a supplemental
pleading.

Section 11 allows extension of time to plead. But the motion must be a valid motion. Requisites for a
valid motion: (1) there is service of such motion to other party, (2) on such terms as may be just.

RULE 12:

A BILL OF PARTICULARS is not a responsive pleading. It is motion that enables the opposing party to
prepare a responsive pleading. Here, the party wishes for some allegations that are ambiguous and
unclear but are alleged to be averred with sufficient particularity. This remedy is available if a cause of
action is actually alleged in the complaint or the allegation of an affirmative defense is sufficient (in
relation to a reply to an answer). You want the facts to be stated in a more particular manner so you
can prepare your answer or reply well. If there is no cause of action the remedy is motion to dismiss for
failure to state a cause of action. The motion for a bill of particulars is a remedy available to both
parties. It is not a remedy to prepare for trial. If you want to prepare for trial, avail for modes of
discovery. This remedy is a litigated motion.

When should this remedy be filed? Within the period to file a responsive pleading; if the defendant
wants to be clarified about some allegations in the complaint, he has within that 15 period to file a
motion for a bill of particulars instead of filing an answer. When this happens, the period to file an
answer is interrupted. So before the defendant files an answer, he has the remedy of motion to
dismiss or to file a motion for a bill of particulars.

In the case of a reply, the period to file a motion for a bill of particulars, before the expiration of the
period to file a reply which is 10 days from service of the answer.

Your motion must contain the defects complained of, what are the allegations ambiguous or unclear,
and specify the paragraph containing these unclear allegations. Then state what particulars you want
to know in order to prepare for your responsive pleading. If the court grants the motion for a bill of
particulars, the other party should file a BILL OF PARTICULARS. The bill of particulars will already state
the details sought by the other party. Here, it is presumed that the complaint is stating a cause of
action. If there no cause of action, file a motion to dismiss. This remedy applies to any pleading.

Vagueness is not a ground for dismissal but a ground to avail of the motion for a bill of particulars.

Remember there are certain facts that can be alleged in general and there are others that should be
alleged specifically. One that should be particularly alleged is fraud, mistake. If these are not alleged in
particularity, the remedy is to file a motion for a bill or particulars.

January 17, 2017


CivPro Transcript

Bill of Particulars (BoP) a more definitive statement of allegations that are vague, indefinite or not
clear.
Purpose: allow the other party to prepare for his/her responsive pleadings.

76
Midterm CivPro Transcript 2016
EH 403
As a Remedy: Bill of Particulars does not only apply to complaint or the defendant in relation to
the complaint but also to the plaintiff in relation to the answer because the plaintiff can opt to reply. It
even applies also to an ambiguity of the reply because the rule allows a specific period for the
defendant to ask a clearer allegation in a reply if the defendant finds that something is vague or
indefinite. [Sorry, verbatim pagkatype, wa sad ko kasabot]
If a BoP is asked by the defendant in relation to the complaint, it presupposes that the
complaint states a cause of action. IOW the complaint is valid, only that there are allegations that are
needed to be clarified as far as the defendant is concerned.
BoP with respect to an answer, it presupposes that the defenses are valid, proper, issues are
raised, but the plaintiff wants to respond through a reply, but before the plaintiff responds, there are
some allegations that are needed to be clarified.
BoP is different from the remedy of Mode of Discovery the latter is a remedy with the
intention of knowing the pieces of evidence available to the other party beforehand.

How: File a motion of BoP. No Court moto proprio. The motion itself would state the
paragraphs which should be clarified and the details to get from the other party.
How allegations should be made. Allege ultimate facts but there are certain facts that can be alleged
generally and alleged particularly.
Example: Alleged particularly fraud/mistake. If a pleading simply alleges that there was fraud/mistake
committed, that is ambiguous. The other party would want to clarify how the fraud/mistake was
committed, IOW want to know the details in order to respond properly. Remedy: Bill of Particulars
Example: Alleged generally jurisdiction, matters of the mind, intention, malice. Difficult to ask details
regarding intention, malice. Impossible for BoP.

When a motion of BoP is filed, the court may:


1. Grant it outright.
2. Deny it outright. because this remedy has been abused by parties to delay proceedings,
3. Hear it.
What happens if the court grants it and what is the period for filing the BoP: 10 days from notice of
order granting the motion to file the BoP, unless the court fixes a different period.

How may the clarified factual allegations be made:


1. By filing and amendment pleading indicating the detailed allegation
2. Filing a separate pleading

What happens if there is an order granting the motion for BoP and a party has been served the order
but fails to comply with the order?
Sec. 4. Effect of noncompliance.
1. can strike out the pleading itself
2. can strike out the portion of the pleading which is the subject of the order
If stricken out, one can be proclaimed as in default because there is no answer.

EXAMPLE:
April 1, 2016 service of summons on defendant
What is the last day of filing the answer? Add 15 days, exclude 1 st day include last day. April 16, 2016
Supposing on April 12, 2016, a motion for BoP was filed. What will happen? It will interrupt the running
of the period of filing an answer.
Supposing on June 1, 2016. Defendant received notice of denial of the motion for BoP. How many days
has the defendant have to file his/her answer? 10 days has lapsed. Exclude 1 st day and day of
interruption. 5 days remaining. June 6, 2016.
Supposing the motion for BoP was filed on April 14, 2016. And it was denied, how many days does the
defendant has to file his/her answer? Rule says that it should not be less than 5 days, defendant still
has a 5-day period instead of the actual 3 days left after interruption.

77
Midterm CivPro Transcript 2016
EH 403
Supposing the motion for BoP was granted. The defendant has 10 days to file his/her Bill of Particulars
from the receipt of order granting the motion for BoP.

Note: BoP becomes part of the pleading which it is intended.

Rule 13.
Filing it is the act of presenting the pleading or other paper to the clerk of court. IOW, it is the
process of presenting the pleading or other documents to the court, in order for the court to act on it.
But it must pass through the office of the clerk of court, not directly to the judge. [hehehe]
Service process of furnishing a copy of what you intend to file in court to the other party. Part of due
process to let the other party know of what is being filed in court.

Rule 13 governs the filing and servicing of pleadings and all papers, except those of which a different
mode of service is prescribed.
Example of the exception. Complaint is a pleading. Filing rule applies. Service it is served
through the sheriff together with the summons and with the complaint.

Note: with respect to service, the general rule is if a litigant has a counsel, service to counsel is service
to litigant. Do not serve your pleading or other documents directly to the litigant.

[From Justice: Earning a living should not define the quality of practice of your profession.
Another quote from Justice: The Earth is enough for everyones needs, not for everybodys wants.]

When should the service be made directly to the other party?


1. party has no counsel.
2. even if there is a counsel but the court orders to be served upon the party himself. At what
instance? When the court issues a show cause order.

All pleadings subsequent to the complaint should be filed to the court and served to the parties.

Sec.3. More detailed discussion on how to file pleadings.


Modes: 1. Personal filing present the original copy to the clerk of court.
- how to indicate that is it the original copy? As long as it is signed,
even if photocopied
2. Filing by registered mail file it through the registry service of the post office.
Note: if filed through registered mail - date of mailing is the date of filing. Unlike in ordinary
mailing, which is date of receipt by the clerk of court not date of mailing.
Judgements and Final orders.
Final orders orders that are different from interlocutory orders. It is an order that ends the case.
Ex. Order granting a motion to dismiss.

How do you prove filing?


1. show to the court the record of the case.
2. if no records? Present your own copy acknowledged by the clerk of court
3. if filed by registered mail? By the register receipt with the affidavit of the person who did the
mailing containing the details of date and place of deposit.

Different modes of service:


1. Personal service residence of the party/counsel, or office of the counsel, between 8AM
6PM, served to a person with a sufficient age and discretion (if wa ang gipangita na tao)
2. Mail service [take note, registered mail AND ordinary mail]
3. Substituted service

78
Midterm CivPro Transcript 2016
EH 403
When is service considered completed? When there is actual delivery.
Note: Personal service is the preferred mode of service. Whenever practicable, the service of pleadings
should be done personally. If no personal service and another mode is used, it should be accompanied
with an explanation as to why there was no personal service.
According to section 11, when there is a violation of the rule of prioritizing, it may (discretion on the
part of the court) be a cause to consider the pleading as not filed.
Exceptions to the need of explanation
1. orders and judgements coming from the court.

Service by Mail: Registered or Ordinary.


When is there a completion of service of ordinary mail? Presumption - it was received 10 days after
mailing.
When is there a completion of service of registered mail? Presumption it was received 5 days after
receipt of notice.
Actual Receipt by mail and Constructive Receipt by mail whichever is earlier is deemed to be the date
of completion of service.

Substituted service: Residence/office address is unknown. Serve it upon the court. Deliver the copy to
the clerk of court accompanied with a justification of the failure of the first two modes.
- this is a last resort mode of service.

How to prove service?


1. Personal service admission by the other party through acknowledgement.
2. By mail affidavit of the person mailing accompanying the receipt notice.

Service of court judgement and resolution:


1. Personal service
2. By Mail
3. Publication applies if the party was served summons and the party still did not appear.

Notice of Lis Pen dens it notifies everybody that the property covered is subject to litigation.
- it cannot be cancelled until there is a final determination of the case.
Except: 1. if it can be shown that the annotation is just to molest the other party
2. if the annotation is not necessary to protect the rights of the other party

79