AR

CASE NO. 20
SECTION 47 RULE 39 (RES JUDICATA)
RCBC V. ROYAL CARGO CORP. GR 179756 (2009)

FACTS: Terrymanila, Inc. filed a petition for voluntary insolvency. One of its creditors
was RCBC with which it had an obligation of ₱3 Million that was secured by a chattel
mortgage. Royal Cargo Corporation, another creditor of Terrymanila, filed an action
for collection of sum of money and preliminarily attached "some" of Terrymanila’s
personal properties. Petitioner sought in the insolvency proceedings permission to
extrajudicially foreclose the chattel mortgage which was granted.

Respondent filed a petition for annulment of the auction sale. Apart from questioning
the inclusion in the auction sale of some of the properties which it had attached,
respondent questioned the failure to duly notify it of the sale at least 10 days before
the sale. Petitioner filed a Motion to Dismiss which was denied. Petitioner appealed
the denial of the Motion to Dismiss via certiorari to the CA. CA dismissed the petition.

ISSUE: W/N the respective decisions of the CA and the SC conclusively settled the
issue on the need to give a 10-day notice to respondent of the holding of the public
auction sale of the chattels.

RULING: NO. The CA resolved only the interlocutory issue of whether the trial court’s
Order denying petitioner’s motion to dismiss was attended by grave abuse of
discretion. It did not rule on the merits of the petition. An order denying a motion to
dismiss is merely interlocutory and cannot give rise to res judicata, hence, it is
subject to amendments until the rendition of the final judgment.

RES JUDICATA
BAR BY PRIOR JUDGMENT CONCLUSIVENESS OF JUDGMENT
There is bar by prior judgment when, as Where there is identity of parties and
between the first case where the subject matter in the first and second
judgment was rendered, and the cases, but no identity of causes of
second case that is sought to be barred, action, there is conclusiveness of
there is identity of parties, subject judgment. The first judgment is
matter, and causes of action. conclusive only as to those matters
actually and directly controverted and
determined, not as to matters merely
involved therein.