ROGELIO P.

MENDIOLA, petitioner,
vs.
COURT OF APPEALS and
PHILIPPINE NATIONAL
BANK, respondents.
G.R. No. 122807 July 5, 1996
 FACTS
• Sometimes in December 1987, the petitioner,
Rogelio Mendiola entered into an agreement
with certain Norma S. Nora for a business
venture exporting prawns.
• It was upon the suggestion of Ms. Nora that
they secure financing from Philippine National
Bank (PNB) which will be secured by collaterals
consisting of two real estate properties of the
petitioner situated in Marikina and covered by
TCT No. 27307.
 FACTS
• On January 27, 1988, the petitioner issued a
Special Power of Attorney (SPA) to Ms. Nora
authorizing her to mortgage his property to the
PNB in order to secure the obligations of the
joint venture to the said bank amounting to five
million pesos (Php 5,000,000.00).
• However, the joint venture did not prosper since
the beginning
 FACTS
• But Ms. Nora has already obtained from PNB
on the strength of the SPA issued by the
petitioner amounting to Php 8,101,440.62 for
the account of the petitioner and secured by the
parcels of land mentioned before.
• On November 11, 1988, the petitioner belatedly
revoked his SPA issued to Ms. Norma and
requested the PNB to release his properties
from the mortgage executed by Ms. Nora
 FACTS
• The petitioner was notified under a Notice of
Sheriff Sale dated April 20, 1989, that a
foreclosure was initiated by PNB against the
properties of the petitioner.
• On May 16, 1989, the petitioner filed a case for
injunction against the PNB, docketed as Civil
Case No. 58173, with Branch 162, Regional
Trial Court in Pasig City, seeking to enjoin the
foreclosure the properties in question
 FACTS
• PNB filed a motion to dismiss the case on the
ground that the complainant did not state a
sufficient cause of action
• RTC granted the petition and the complaint was
ordered dismissed without pronouncement as
to cost
• The temporary restraining order under the date
of May 16, 1989 was lifted and set aside also
 FACTS
• On November 16, 1989, Petitioner filed a Notice
of Appeal to the said Order
• While the Civil Case 58173 was pending with
the Court, the properties were sold in auction
sale on October 3, 1990, with PNB as the
highest bidder
• On October 10, the petitioner filed an action to
annul the said October 3, 1990 auction
docketed as Civil Case No. 60012.
 FACTS
• PNB likewise file filed a motion to dismiss the
same alleging that there is a pending case
between the same parties for the same cause
of action which the petitioner opposed the same
motion to dismiss
• On February 28, 1991 , the motion filed by PNB
was granted to dismiss Civil Case No. 60012 on
the ground of litis pendentia
 FACTS
• Again, a motion for reconsideration was filed by
the petitioner but the same was denied
• Petitioner appealed before the court who
rendered the decision dated November 1995 in
CA-GR. CV No. 37940, affirming the Orders in
toto, with cost against the plaintiff-appellant
 ISSUE
• Whether or not CA erred in dismissing the
petition?

• Whether or not res judicata has already set in

the case?
 HELD
• No.

• Yes.
 RATIO
• The instant petition has now become moot and
academic, because the first case, which is an
application for injunction filed by herein
petitioner RTC, Pasig City against private
respondent PNB to prevent the latter from
foreclosing his real properties, and which was
then pending appeal before the court a quo at
the time the second action was filed, has now
been finally dismissed by the respondent Court
of Appeals.
 RATIO
• Consequently, the instant petition which prays
for the declaration of nullity of the auction sale
by PNB of private respondent's properties
becomes dismissible under the principle of res
judicata.
 RATIO
• There is "bar by former judgment" when,
between the first case where the judgment was
rendered, and the second case where such
judgment is invoked, there is identity of parties,
subject matter and cause of action. When the
three identities are present, the judgment on the
merits rendered in the first constitutes an
absolute bar to subsequent action.
 RATIO
• It is final as to the claim or demand in
controversy, including the parties and those in
privity with them, not only as to every matter
which was offered and received to sustain or
defeat the claim or demand, but as to any other
admissible matter which might have been
offered for that purpose.
 RATIO
• But where between the first case wherein
judgment is rendered and the second case
wherein such judgment is invoked, there is no
identity of cause of action, the judgment is
conclusive in the second case, only as to those
matters actually and directly controverted and
determined, and not as to matters merely
involved therein. This is what is termed
conclusiveness of judgment