e.

) RULE 27 — PRODUCTION OR INSPECTION OF DOCUMENTS OR THINGS

Rule 27 of the Rules of Court provides the mechanics for the production of
documents and the inspection of things during the pendency of a case. It also deals with
the inspection of sources of evidence other than documents, such as land or other
property in the possession or control of the other party. This remedial measure is
intended to assist in the administration of justice by facilitating and expediting the
preparation of cases for trial and guarding against undesirable surprise and delay; and it
is designed to simplify procedure and obtain admissions of facts and evidence, thereby
shortening costly and time-consuming trials. It is based on ancient principles of equity.
More specifically, the purpose of the statute is to enable a party-litigant to discover
material information which, by reason of an opponent's control, would otherwise be
unavailable for judicial scrutiny, and to provide a convenient and summary method of
obtaining material and competent documentary evidence in the custody or under the
control of an adversary. It is a further extension of the concept of pretrial.

To illustrate, let us say that, ABC Corporation obtained 4 foreign currency

denominated loans from XYZ Bank as capital for its manufacturing operations. The
loans were secured by Promissory notes and by assignment to XYZ Bank of all the
proceeds of ABC Corp. Back-end Services Agreement with Alliance Semiconductors.
However, ABC Corporation failed to pay its obligations despite repeated demands from
the XYZ Bank. This prompted XYZ Bank to file a complaint for collection of sum of
money. Eventually, ABC Corporation already received proceeds of its Back-end
agreement with Alliance.

During the trial, XYZ Bank may file a motion for the production and inspection of
documents for the inspection of all books of accounts, financial statements, receipts,
checks, vouchers, and other accounting records in connection with the
proceeds/payment of the Back-end Services Agreement already received by ABC
Corporation from Alliance.
Using this mode of discovery, the court may order a party, in this example the
ABC Corporation, to: 1.) produce and permit the inspection and copying or
photographing, by or on behalf of the moving party, or of any designated documents,
papers, books, accounts, letters, photographs, objects or tangible things, not privileged,
which constitute or contain evidence material to any matter involved in the action and
which are in his possession, custody or control; or 2.) permit entry upon designated land
or other property in his possession or control for the purpose of inspecting, measuring,
surveying, or photographing the property or any designated relevant object or operation
thereon.

To avail of this mode, the requisites that have to be complied with to compel the
other party to produce or allow the inspection of documents or things are: (a) the party
must file a motion showing good cause (b) notice of the filing of the motion must be
served on all parties (c) the motion must designate the papers or things that are to be
produced and inspected (d) such papers or things are not privileged (e) that they
constitute or contain evidence material to any matter involved in the litigation, and (f)
that they are in possession, control or custody of the other party.

If for example, XYZ Bank’s motion was fail to specify with particularity the
documents it required ABC Corporation to produce. The motion shall be considered
fatally defective as it violates Sec. 1 Rule 27. The motion is called blanket inspection,
too broad and too generalized in scope. A motion for production and inspection of
documents should not demand a roving inspection of a promiscuous mass of
documents. The inspection should be limited to those documents designated with
sufficient particularity in the motion, such that the adverse party can easily identify the
documents he is required to produce.

In addition, failure to comply on the part of the party to comply with the request of
the other for the production and inspection of documents, shall result to treating the
matters regarding the contents of the documents sought to be produced but which were
not produced as having been established.