Crisologo, Et Al vs. JEWM Agro
Crisologo, Et Al vs. JEWM Agro
Crisologo, Et Al vs. JEWM Agro
DECISION
MENDOZA, J.:
This controversy stemmed from various cases of collection for sum of money
filed against So Keng Kok, the owner of various properties including two (2)
parcels of land covered by TCT Nos. 292597 and 292600 (subject properties),
which were attached by various creditors including the petitioners in this
case. As a result, the levies were annotated on the back of the said titles.
In the same proceedings, JEWM immediately filed its Affidavit of Third Party
Claim and the Urgent Motion Ad Cautelam. It prayed for the exclusion of the
subject properties from the notice of sale. In an order, dated August 26,
2010, however, the motion was denied. In turn, the Spouses Crisologo posted
a bond in order to proceed with the execution.
To protect its interest, JEWM filed a separate action for cancellation of lien
with prayer for the issuance of a preliminary injunction before RTC–Br. 14,
docketed as Civil Case No. 33,551–2010. It prayed for the issuance of a writ
of preliminary injunction to prevent the public sale of the subject properties
covered in the writ of execution issued pursuant to the ruling of RTC–Br. 15;
the cancellation of all the annotations on the back of the pertinent TCTs; and
the issuance of a permanent injunction order after trial on the merits. “The
Register of Deeds of Davao City, Sheriff Robert Medialdea, John and Jane
Does and all persons acting under their direction” were impleaded as
defendants.
In its Resolution, dated January 6, 2011, the CA denied the application for a
TRO, but directed Spouses Crisologo to amend their petition. On January 19,
2011, the Spouses Crisologo filed their Amended Petition6 with prayers for
the issuance of a TRO and/or writ of preliminary injunction, the annulment of
the aforementioned orders of RTC Br. 14, and the issuance of an order
dissolving the writ of preliminary injunction issued in favor of JEWM.
Pending disposition of the Amended Petition by the CA, JEWM filed a motion
on December 6, 2010 before RTC–Br. 14 asking for the resolution of the case
on the merits.
On January 10, 2011, RTC–Br. 14 ruled in favor of JEWM, with the dispositive
portion of its Decision7 stating as follows:
WHEREFORE, in view of all the foregoing, judgment is hereby rendered in
favor of the plaintiff as follows:
3. cost of suit.
SO ORDERED.8
Spouses Crisologo then filed their Omnibus Motion Ex Abudanti ad Cautelam,
asking RTC– Br. 14 to reconsider the above decision. Because no motion for
intervention was filed prior to the rendition of the judgment, a certificate,
dated March 17, 2011, was issued declaring the January 10, 2011 decision
final and executory.
III. The Court of Appeals erred in denying our application for the
issuance of a temporary restraining order and/or a writ of
preliminary injunction.
IV. The Court of Appeals erred in holding that the issues raised by
petitioners before it [had] been mooted by the January 10,
2011 decision of RTC Branch 14.10
The Spouses Crisologo also question the statement of the CA that their
failure to file the motion to intervene under Rule 19 before RTC–Br. 14 barred
their participation in the cancellation proceedings. They put emphasis on the
court’s duty to, at the very least, suspend the proceedings before it and have
such indispensable parties impleaded.
As to the ruling on the denial of their application for the issuance of a TRO or
writ of preliminary injunction, Spouses Crisologo claim that their adverse
interest, evinced by the annotations at the back of the certificates of title,
warranted the issuance of a TRO or writ of preliminary injunction against
JEWM’s attempt to cancel the said annotations in violation of their
fundamental right to due process.
Lastly, Spouses Crisologo cast doubt on the CA ruling that the issues
presented in their petition were mooted by the RTC–Br. 14 Decision, dated
January 10, 2011. Having been rendered without impleading indispensable
parties, the said decision was void and could not have mooted their petition.
The crux of this controversy is whether the CA correctly ruled that RTC–Br.
14 acted without grave abuse of discretion in failing to recognize Spouses
Crisologo as indispensable parties in the case for cancellation of lien.
Here, undisputed is the fact that Spouses Crisologo’s liens were indeed
annotated at the back of TCT Nos. 325675 and 325676. Thus, as persons
with their liens annotated, they stand to be benefited or injured by any order
relative to the cancellation of annotations in the pertinent TCTs. In other
words, they are as indispensable as JEWM itself in the final disposition of the
case for cancellation, being one of the many lien holders.
This is not the first time Judge Omelio has rendered a decision affecting third
parties’ interests, without even notifying the indispensable parties. In the
first disputed case, JEWM Agro–Industrial Corporation v. Register of Deeds,
Sheriff Medialdea, John & Jane Does and all persons acting under their
directions, Judge Omelio failed to cause the service of proper summons upon
the John and Jane Does impleaded in the complaint. Even when Sps.
Crisologo voluntarily appeared in court to be recognized as the John and Jane
Does, Judge Omelio refused to acknowledge their appearance and ordered
the striking out of Sps. Crisologos' pleadings. For this reason, the
Investigating Justice recommended admonishing Judge Omelio for failing to
recognize the Sps.Crisologo as indispensable parties in that case.
x x x x x x x x x
Clearly, the cancellation of the annotation of the sale without notifying the
buyers, Sps. Crisologo, is a violation of the latter’s right to due process. Since
this is the second time that Judge Omelio has issued an order which fails to
notify or summon the indispensable parties, we find Judge Omelio guilty of
gross ignorance of the law, with a warning that repetition of the same or
similar act will merit a stiffer penalty in the future.
xxx
SO ORDERED.20
This manifest disregard of the basic rules and procedures constitutes a grave
abuse of discretion.
Needless to say, judges are expected to exhibit more than just a cursory
acquaintance with statutes and procedural laws. They must know the laws
and apply them properly in good faith as judicial competence requires no
less. 24
Despite the clear existence of grave abuse of discretion on the part of RTC–
Br. 14, JEWM asserts technical grounds on why the CA did not err in
dismissing the petition via Rule 65. It states that:
a) The Crisologos could have used other available remedies such as
intervention under Rule 19, an appeal of the judgment, or even an
annulment of judgment, which are, by all means, plain, speedy and
adequate remedies in the ordinary course of law;
b) The Crisologos lack legal standing to file the Rule 65 petition since they
were not impleaded in the Branch 14 case.
The rule is that a petition for certiorari under Rule 65 is proper only if there is
no appeal, or any plain speedy, and adequate remedy in the ordinary course
of law.
Although Intervention under Rule 19 could have been availed of, failing to
use this remedy should not prejudice Spouses Crisologo. It is the duty of
RTC–Br. 14, following the rule on joinder of indispensable parties, to simply
recognize them, with or without any motion to intervene. Through a cursory
reading of the titles, the Court would have noticed the adverse rights of
Spouses Crisologo over the cancellation of any annotations in the subject
TCTs.
Neither will appeal prove adequate as a remedy since only the original
parties to an action can appeal.25 Here, Spouses Crisologo were never
impleaded. Hence, they could not have utilized appeal as they never
possessed the required legal standing in the first place.
And even if the Court assumes the existence of the legal standing to appeal,
it must be remembered that the questioned orders were interlocutory in
character and, as such, Spouses Crisologo would have to wait, for the review
by appeal, until the rendition of the judgment on the merits, which at that
time may not be coming as speedy as practicable. While waiting, Spouses
Crisologo would have to endure the denial of their right, as indispensable
parties, to participate in a proceeding in which their indispensability was
obvious. Indeed, appeal cannot constitute an adequate, speedy and plain
remedy.
Based on the above, recourse to the CA via Rule 65 would have already been
proper, except for one last issue, that is, Spouses Crisologo’s legal standing
to file the same. JEWM cites DBP v. COA27 where the Court held:
This case, however, is an exception. In many instances, the Court has ruled
that technical rules of procedures should be used to promote, not frustrate
the cause of justice. Rules of procedure are tools designed not to thwart but
to facilitate the attainment of justice; thus, their strict and rigid application
may, for good and deserving reasons, have to give way to, and be
subordinated by, the need to aptly dispense substantial justice in the normal
cause. 28
To turn a blind eye to the said nullity and, in turn, rule as improper the
recourse to Rule 65 by the lack of legal standing is to prolong the denial of
due process to the persons whose interests are indispensible to the final
disposition of the case. It will only result in a protracted litigation as Spouses
Crisologo will be forced to rely on a petition for the annulment of judgment
before the CA (as the last remaining remedy), which may again reach this
Court. To prevent multiplicity of suits and to expedite the swift
administration of justice, the CA should have applied liberality by striking
down the assailed orders despite the lack of legal standing on the part of
Spouses Crisologo to file the Rule 65 petition before it. Besides, this lacking
requirement, of which Spouses Crisologo were not even at fault, is precisely
the reason why this controversy arose.
All told, the CA erred in dismissing the amended petition filed before it and
in not finding grave abuse of discretion on the part of RTC–Br. 14.
SO ORDERED.
Endnotes:
Id. at 335–340.
13
Id. at 338.
14
Nationwide Security and Allied Services, Inc. v. Court of Appeals, 580 Phil.
23
Spouses Leynes v. Former Tenth Division of the Court of Appeals, et. al.,
25
Santos v. Litton Mills, Incorporated, G.R. No. 170646, June 22, 2011, 652
28
SCRA 510. citing Fiel v. Kris Security Systems, Inc., 448 Phil.657, 662 (2003).